markup calculator.
cost → sell price with markup %
- sell price
- $40
- profit per unit
- $15
- implied margin %
- 37.50%
> worked example
A product costs $25.00 to land. With a 60% markup the widget returns a sell price of $40.00, a profit per unit of $15.00, and an implied gross margin of 37.50%. That 37.50% margin is noticeably lower than the 60% markup, a common source of confusion when founders set prices.
takeaway, Markup % and margin % are not the same number. A 60% markup is only a 37.5% margin, always check which one your pricing sheet is using.
> when operators reach for this
- Shopify founders setting opening prices on a new SKU and needing a quick sanity-check before the product page goes live.
- Merchandisers building a range where every SKU must hit a minimum 35% gross margin, back-calculating the required markup from that target.
- Wholesale buyers quoting a resale price to a retailer and needing to show the implied margin alongside the markup they applied.
- Amazon sellers pricing against competitors while confirming they still clear FBA fees after applying their standard markup.
- Finance teams auditing a supplier's invoice to verify the markup applied matches the agreed contract terms.
> the calculation
- sell price
cost × (1 + markup % ÷ 100) - profit per unit
sell price − cost - implied margin %
(sell price − cost) ÷ sell price × 100Always lower than markup % for the same product. 60% markup = 37.5% margin.