Find the markup
Enter the cost and selling price to calculate the markup, equivalent margin and profit.
Markup
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Equivalent margin
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Profit
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Three calculators on one page: find a product's markup, calculate the selling price from a markup, or use the divisor markup to price your products while accounting for all your expenses and taxes.
Selling price from markup
Enter the cost and desired markup to calculate the selling price and real margin.
Selling price
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Profit
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Equivalent margin
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Divisor Markup Calculator
Price your product while accounting for all your variable expenses, taxes and desired net margin at once. Ideal for e-commerce and marketplaces.
Fill in with rates from:
Fill in the fields on the left to calculate.
What is Markup?
Markup is the percentage added on top of a product's cost price to arrive at the selling price. It's widely used in retail, manufacturing and wholesale as a fast pricing method.
The fundamental difference between markup and profit margin is the calculation base:
- Margin: calculates profit relative to the selling price (larger base)
- Markup: calculates profit relative to the cost price (smaller base)
Simple Markup
Markup (%) = [(Selling Price − Cost) ÷ Cost] × 100
Selling Price
SP = Cost × (1 + Markup)
Equivalent Margin
Margin = Markup ÷ (1 + Markup)
Classic mistake: A 50% markup does not equal a 50% margin. With a $100 cost and a 50% markup, the selling price is $150 and the real margin is only 33.33% — not 50%.
What is Divisor Markup and Why Use It?
Divisor markup is the most complete method for pricing. It accounts for all variable expenses and your desired margin at the same time, ensuring the selling price covers everything and still generates the planned profit.
Divisor = 1 − (Variable Expenses% + Taxes% + Margin%)
Selling Price = Cost ÷ Divisor
Selling Price = Cost ÷ Divisor
Why isn't simple markup enough on marketplaces?
Imagine a product with a $50 cost. You apply a 60% markup and arrive at an $80 selling price. Looks great. But on eBay:
- Commission 13% = $10.40
- Gateway 3% = $2.40
- Tax 6% = $4.80
- Total fees = $17.60
- Real cost = $50 + $17.60 = $67.60
- Real profit = $80 − $67.60 = $12.40 (15.5% margin)
With divisor markup, you set your desired margin (e.g., 20%) and the system automatically calculates the correct price: $50 ÷ (1 − 0.13 − 0.03 − 0.06 − 0.20) = $50 ÷ 0.58 = $86.21.
Tip: Use the preset buttons in the calculator above to automatically fill in the fee rates of the main marketplaces.
Table: Markup × Equivalent Margin
For any markup applied, see the resulting real profit margin:
| Markup applied | Price (cost $100) | Real margin |
|---|
Markup will always be higher than the equivalent margin — because it's calculated over a smaller base (the cost).
When to Use Markup and When to Use Margin
Use Markup when...
- You need to apply a fixed multiplier across a product line
- Your industry uses markup as a market standard (manufacturing, wholesale)
- You need speed pricing many SKUs
- You want to use divisor markup to absorb all fees at once
Use Margin when...
- You want to know exactly how much of your revenue is profit
- You work with profitability targets on revenue
- You're analyzing business viability and making projections
- You're comparing profitability across products or categories
To calculate profit margin directly, visit the Margin Calculator.