FREE TOOL

Calculate your product markup

Enter your cost and selling price to see your markup percentage. Find the right selling price to hit your profit targets.

Inputs

Your cost per unit
Your retail selling price

Results

Markup
Profit per Unit
Profit Margin

Markup Formula

Markup = ((Selling Price - Cost) / Cost) × 100

Markup measures how much more you charge compared to what you paid. A 100% markup means you sell the product for double your cost. This is commonly used in retail pricing to set selling prices from known costs.

How to improve your markup

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Use tiered markup strategies

Apply higher markups to low-cost items and lower markups to expensive items. Customers are less price-sensitive on accessories.

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Factor in all costs

Include shipping, packaging, transaction fees, and returns in your cost before calculating markup.

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Research competitor pricing

Check what competitors charge for similar products to ensure your markup keeps you competitive.

STORELYST

Set profitable prices automatically

StoreLyst helps you track COGS and calculate optimal pricing for every product in your catalog. See your real markup and margins across your entire Shopify store.

Learn about COGS Management →

Frequently asked questions

What is a good markup for ecommerce?

A common ecommerce markup is 100% (keystone pricing), meaning you sell for double your cost. However, markups vary widely — fashion often uses 200-300%, while electronics may use 30-50%. Your ideal markup depends on competition, demand, and operating costs.

What is the difference between markup and margin?

Markup is based on cost: how much more you charge than what you paid. Margin is based on selling price: what percentage of the sale is profit. A 100% markup equals a 50% margin. They measure the same profit differently.

How do I calculate selling price from desired markup?

Multiply your cost by (1 + desired markup percentage / 100). For a 100% markup on a €25 item: €25 × (1 + 100/100) = €25 × 2 = €50 selling price.

Is a higher markup always better?

Not necessarily. Higher markups mean more profit per sale but can reduce sales volume if prices are too high for your market. The best markup maximizes total profit — the balance between per-unit profit and volume.

Optimize your pricing strategy

Track COGS and margins across your entire catalog with StoreLyst.