Markup Calculator: Calculate Your Product Markup
Calculate your markup percentage instantly. Enter your cost and selling price to see your markup and ensure profitable pricing.
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What is Markup?
Markup is the percentage added to the cost of a product to determine its selling price. It's a key pricing strategy metric that helps businesses ensure profitability while remaining competitive.
Markup Formula
Markup = ((Selling Price - Cost) ÷ Cost) × 100Markup Benchmarks by Industry
Standard markups vary greatly by sector:
- Groceries/Supermarkets: 15-25% markup
- Retail/Clothing: 50-100% markup
- Luxury/Jewelry: 100-300%+ markup
- Restaurants: 200-400% on food, 300-500% on beverages
Questions Fréquentes
What's the difference between markup and margin?
Markup is calculated based on cost (how much you add to cost), while margin is calculated based on selling price (what percentage of the price is profit).
What is a good markup percentage?
It varies by industry. Retail typically uses 50-100% markup, while luxury goods can have 100-200%+ markup.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. For example, a 50% markup equals a 33.3% margin.
Why do some products have high markups?
High markups compensate for low volume, high fixed costs, luxury perception, or significant support/service costs.
How do I set the right markup?
Consider: competitor pricing, perceived value, fixed costs to cover, desired profit margin, and customer price sensitivity.
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