Instant Markup Calculator
Simple utility to convert Cost + Markup into Price and Margin. Prevent the classic retailer mistake of confusing markup with margin.
The Profit Spread
Visualizing the lift.
Price
This is what the customer pays.
Margin
This is the % of that payment you keep. Ensure this meets your business requirements (usually >40% for retail).
Profit Dollars
You make $5.00 per unit.
Execution Steps
Enter Cost (COGS).
Enter Desired Markup %.
See the Final Selling Price and resultant Margin %.
Pro Strategy
- If you need a 50% margin, you must apply a 100% markup. Do not apply a 50% markup, or you will only get a 33% margin.
- Suppliers talk in Markup. Investors/Accountants talk in Margin. Use this tool to translate in real-time meetings.
- Always calculate markup on the 'Landed Cost' (including freight), not just the factory FOB cost.
Core Concepts
Markup
Percentage added to Cost. (Price - Cost) / Cost. 50% Markup on $10 = $15 Price.
Margin
Percentage of Price that is profit. (Price - Cost) / Price. $5 Profit on $15 Price = 33% Margin.
Keystone Pricing
A standard retail practice of doubling the cost (100% Markup), which equals exactly 50% Margin.
What is Instant Markup Calculator?
This tool uses the standard accounting formula for markup pricing: Price = Cost * (1 + Markup%). It simultaneously calculates Gross Margin to show the relationship between the two metrics.
Best For
- • Buying inventory from suppliers.
- • Quickly setting a price during a negotiation.
- • Verifying a margin target.
Limitations
- • Does not account for tax or variable costs outside of COGS.
Alternative Methods
Margin Converter
Allows you to input Margin target to find Markup required.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
New Retail Buyer
Buyer applied 40% markup thinking she hit 40% margin target.
Used calculator to see 40% markup = 28% margin.
Wholesale Negotiation
Supplier increased cost by 10%.
Used tool to quickly calculate new price needed to maintain 50% margin.