Calculate markup percentage, profit margins, and optimal selling prices. Perfect for retail pricing, wholesale calculations, and developing profitable pricing strategies.
Markup is the percentage added to the cost price to determine the selling price. It's calculated as (Selling Price - Cost) / Cost × 100. For example, if you buy for $50 and sell for $75, your markup is 50% ($25 profit ÷ $50 cost).
While related, markup and margin are different. Markup is based on cost, margin is based on selling price. A 100% markup equals a 50% margin. Retailers typically think in markup, while investors focus on margin. Neither is better - they're just different perspectives on profitability.
Pro Tip: Start with your desired profit margin and work backwards to find the required markup. Remember to factor in all costs including overhead, shipping, returns, and payment processing fees. A seemingly good markup can result in losses if hidden costs aren't considered.