Use the implied margin as a quick check, especially when you are comparing product pricing methods or deciding whether a simple markup rule leaves enough room for other business expenses.
For example, a 75% markup on a $12 cost adds $9 and produces a $21 selling price. That price has an implied profit margin of about 42.9%, not 75%.
Enter the product cost and the markup percentage you want to add. The calculator applies the markup to cost to produce a selling price.
How to Calculate Markup on a Product
Markup is not the same as margin
- Markup is based on cost
- Margin is based on selling price
- Other fees and operating costs can reduce actual profit
- Use the result as a pricing starting point
How this calculator works
Example
A $12 product with a 75% markup adds $9.00 and produces a $21.00 selling price. The implied margin is about 42.9%.
Important assumptions
Results are planning estimates. Replace the default assumptions with your actual costs, rates, shipping arrangements, discounts, and sales volume. Marketplace and payment fees can change over time.