Free Pricing & Profitability Tool Pricing & Profitability

Markup Calculator

Turn product cost into a practical selling-price and profitability estimate.

Enter your product cost and selling price to calculate markup percentage, profit per unit and gross margin instantly.

If you have not decided your selling price yet, enter a target markup instead and the calculator can estimate the corresponding selling price. It is useful for importers, wholesalers, retailers, private-label brands and sourcing teams evaluating product economics before placing an order.

Free to use Instant estimate Built for sourcing & trade

% Instant markup calculation

Profit Per-unit profitability

B2B Built for buying decisions

Cost Price per Unit

Enter the cost of one unit. For import profitability, using your landed cost per unit normally provides a more meaningful commercial result than factory price alone.

Selling Price per Unit

Enter your planned wholesale or retail selling price. Leave this at zero if you want the calculator to determine selling price from a target markup.

Target Markup

Optional. If no selling price is entered, add your target markup percentage and the calculator will estimate the required selling price.

Currency

Choose the currency used for both your cost and selling price.

Markup vs Margin

Markup and gross margin are different percentages. Markup measures profit relative to cost, while gross margin measures profit relative to selling price.

Pricing Result

Markup & Profitability Result

Enter your pricing details

Add your product cost and either a selling price or target markup to calculate profitability.

Estimates generated by this calculator are for preliminary planning only. Actual manufacturing cost, finished weight, material consumption, packing, freight, duty, container utilization or other commercial results may vary according to construction, specifications, production method and supplier.

About this calculator

What Is a Markup Calculator?

Markup is one of the most important pricing measurements for wholesalers, retailers, importers and private-label brands. It shows how much a product's selling price exceeds its cost, expressed as a percentage of the cost.

For example, if a product costs $10 and is sold for $18, the profit per unit is $8. Because that $8 profit is measured against a $10 cost, the markup is 80%.

Primeval's Markup Calculator helps buyers quickly compare cost price, selling price, markup percentage, profit per unit and gross margin. It can also work in reverse: enter a cost and target markup to estimate the selling price needed to achieve that markup.

This can be particularly useful when evaluating supplier quotations, landed product costs, wholesale pricing, retail pricing and assortment profitability before committing working capital to inventory.

Simple process

How to Calculate Product Markup

Enter your specifications and use the result as a practical starting point for product, sourcing and shipment planning.

Enter your cost per unit

Enter what one unit actually costs your business. For imported products, landed cost per unit can provide a more realistic profitability basis than factory price alone.

Enter your planned selling price

If you already know the wholesale or retail price, enter it to calculate actual markup, unit profit and gross margin.

Or enter a target markup

If you are still setting the selling price, enter your desired markup percentage instead. The calculator can estimate the corresponding selling price.

Select your currency

Choose the currency used for your cost and selling-price figures. All monetary inputs should use the same currency.

Review markup and profit

The result shows markup percentage, selling price, profit per unit and gross margin percentage.

Use the result for sourcing decisions

Compare profitability across suppliers, products and cost scenarios before finalizing purchase quantities or retail pricing.

Markup compares the profit generated by a product with the cost of acquiring or producing that product. First subtract cost from selling price to calculate profit. Then divide profit by cost and multiply by 100.

Formula

Markup % = ((Selling Price − Cost Price) ÷ Cost Price) × 100

What the values mean

Cost Price: The product cost per unit used as the basis for the markup calculation.
Selling Price: The price at which the product is sold to the customer.
Profit per Unit: Selling price minus cost price.
Markup Percentage: Profit expressed as a percentage of product cost.
Gross Margin Percentage: Profit expressed as a percentage of selling price.

Practical examples

Markup Calculator Examples

See how typical values translate into a useful planning estimate.

Example 1

$10 Cost and $15 Selling Price

A product costing $10 and selling for $15 generates $5 profit per unit.

Cost Price: $10.00
Selling Price: $15.00
Profit: $5.00

Result 50% markup and 33.3% gross margin

Example 2

$10 Cost and $18 Selling Price

Increasing the selling price to $18 creates $8 profit on a $10 cost.

Cost Price: $10.00
Selling Price: $18.00
Profit: $8.00

Result 80% markup and 44.4% gross margin

Example 3

$20 Cost with 100% Target Markup

A 100% markup means adding an amount equal to the original cost.

Cost Price: $20.00
Target Markup: 100%

Result $40 selling price, $20 profit and 50% gross margin

Example 4

€8 Landed Cost and €20 Selling Price

Importers can use landed cost instead of factory price to understand profitability after relevant sourcing and logistics expenses.

Landed Cost: €8.00
Selling Price: €20.00
Profit: €12.00

Result 150% markup and 60% gross margin

Markup Explained

What Is Markup?

Markup measures how much is added to a product's cost to arrive at its selling price. It is normally expressed as a percentage of cost.

If a product costs $100 and is sold for $150, the profit is $50. Because that $50 is compared with the $100 cost, the markup is 50%.

Markup is widely used when setting wholesale and retail prices, evaluating supplier quotations and comparing potential product profitability.

Important Difference

Markup vs Margin: What Is the Difference?

Markup and margin both describe profitability, but they use different denominators. Markup compares profit with cost. Gross margin compares profit with selling price.

This means a 50% markup does not equal a 50% margin. Buyers, retailers and sales teams should avoid using the terms interchangeably.

Markup vs Gross Margin

Measurement	Formula	What It Measures
Markup	Profit ÷ Cost × 100	Profit relative to product cost
Gross Margin	Profit ÷ Selling Price × 100	Profit relative to revenue

Conversion Reference

Markup and Gross Margin Comparison Table

These examples show why markup percentage is always higher than the equivalent gross margin percentage when profit is positive.

Common Markup to Margin Examples

Markup	Cost	Selling Price	Gross Margin
10%	$100	$110	9.1%
20%	$100	$120	16.7%
25%	$100	$125	20.0%
33.3%	$100	$133.30	25.0%
50%	$100	$150	33.3%
75%	$100	$175	42.9%
100%	$100	$200	50.0%
150%	$100	$250	60.0%
200%	$100	$300	66.7%

Pricing Formula

How to Calculate Selling Price from Markup

If you know your cost and target markup but have not chosen a selling price, multiply the cost by one plus the markup rate.

For example, a $20 product with a 75% markup would have a calculated selling price of $35. The additional $15 represents profit before considering expenses that are not already included in the cost figure.

Product Cost

Which Cost Should You Use in a Markup Calculation?

The quality of a markup calculation depends heavily on the cost figure used. A factory quotation may not represent the complete cost of making a product available for sale.

For importers, using landed cost per unit can often provide a more useful commercial basis because it may capture additional sourcing and logistics expenses.

Factory Cost The manufacturer's quoted price before additional import-related expenses.
FOB Cost A quotation based on agreed FOB responsibilities and costs.
Landed Cost A broader product cost that can include applicable freight, duty, taxes, clearance and other import expenses.
Fully Allocated Cost Some businesses may additionally allocate warehousing, fulfillment, marketplace, payment or other operational costs.

Importers

Why Importers Should Calculate Markup on Landed Cost

Using only the supplier's factory price can overstate profitability if freight, duty, insurance, customs handling and local transport materially increase the real cost of inventory.

For example, a product may cost $6 at the factory but $8 after relevant import expenses. If it sells for $16, markup calculated on the $6 factory price would be 166.7%, while markup on an $8 landed cost is 100%.

Both numbers may be mathematically correct for their respective cost bases, but the landed-cost calculation is usually more useful when evaluating the profitability of imported inventory.

Wholesale

How Wholesalers Can Use Markup

Wholesalers can use markup calculations to evaluate whether supplier costs leave enough commercial space between product acquisition cost and wholesale selling price.

Compare suppliers Measure how different buying prices affect potential unit profitability.
Set wholesale prices Use target markup as one input when building wholesale pricing.
Evaluate promotions Model whether discounted selling prices still provide an acceptable return over product cost.
Plan assortments Compare the potential profitability of multiple products before allocating purchasing budgets.
Negotiate costs Understand how supplier price reductions can translate into improved unit economics.

Retail

How Retailers Use Product Markup

Retailers often evaluate the relationship between merchandise cost and retail price when building assortments. A markup calculation can help show how much price has been added above the merchandise cost.

However, a healthy merchandise markup does not automatically mean the overall business is profitable. Operating expenses, markdowns, returns, advertising, payment processing, marketplace commissions, fulfillment and overhead may still need to be covered.

Private Label

Markup for Private-Label Products

Private-label products can involve additional costs beyond standard wholesale merchandise. Buyers may pay for samples, artwork, custom packaging, labels, product testing, inspection, freight and development.

When evaluating private-label markup, decide which of these expenses should be included in the product cost base rather than treating the supplier's unit quotation as the only cost.

Product development Sampling and development costs may need to be allocated across expected unit volumes.
Custom packaging Branded boxes, inserts, labels and tags can increase unit cost.
Testing Compliance or performance testing can form part of programme cost.
Inspection Quality inspection costs may need to be allocated to the shipment.
Freight Ocean, air, courier or road freight can materially affect landed cost.

Sourcing Decisions

How Supplier Price Changes Affect Markup

Small changes in supplier price can create meaningful differences in markup when the selling price remains unchanged.

For example, if a product sells for $20, reducing landed cost from $10 to $9 increases profit from $10 to $11. Markup rises from 100% to approximately 122.2%.

This is one reason buyers should evaluate supplier quotations not only as cost reductions but also in terms of their effect on unit economics.

Discounting

How Discounts Affect Markup and Margin

Retail promotions and wholesale discounts reduce the actual selling price. When cost remains unchanged, lower selling prices reduce both profit per unit and markup.

Businesses planning frequent promotions may therefore model profitability using the expected realized selling price rather than only the full list price.

Price Planning

Markup Does Not Include Every Business Expense

The calculator measures the difference between the entered product cost and selling price. It does not automatically deduct wider operating expenses unless those costs have already been incorporated into your cost input.

Advertising Customer acquisition and campaign costs can reduce actual contribution.
Marketplace Fees Online marketplaces can charge commissions, fulfillment and other fees.
Payment Processing Card and payment-gateway fees can reduce retained revenue.
Warehousing Storage and inventory-handling costs may need separate consideration.
Returns Product returns, replacements and damaged merchandise can affect realized profitability.
Business Overhead Staff, rent, systems, utilities and administration are not represented by merchandise markup alone.

Target Pricing

What Is a Good Markup Percentage?

There is no universal markup percentage that is appropriate for every product or business. The required markup depends on selling channel, category, operating expenses, competitive pricing, inventory risk, discounting, customer acquisition costs and target profitability.

A product with high inventory turnover and low selling costs may work under a different pricing structure from a slow-moving decorative product that requires warehousing, promotions and frequent markdowns.

Use markup as one commercial measurement rather than treating a single percentage as a universal rule.

Home Textiles

Markup Planning for Home Textile Products

Importers and retailers sourcing home textiles can use markup calculations to compare different categories and constructions before committing to inventory.

Cushion Covers Compare basic woven products with embroidered, tufted or premium-material constructions.
Rugs & Carpets Consider product cost together with substantial packing and freight requirements.
Curtains Fabric consumption, size and finishing can create meaningful cost differences between products.
Bedding Material, thread count, construction and packaging can influence landed unit cost.
Throws Yarn, weave, finishing and weight can affect both factory cost and freight.

Commercial Strategy

Markup Should Be Used Together with Margin and Landed Cost

A markup calculator is most useful as part of a broader pricing workflow. First determine a realistic product or landed cost. Then calculate markup, margin and profit under different selling-price scenarios.

For imported merchandise, buyers can start with a supplier quotation, calculate approximate landed cost, evaluate markup and margin, and then compare the resulting economics with market pricing.

Important

Markup Is a Pricing Metric, Not Net Profit

The profit figure shown by this calculator represents selling price minus the entered product cost. It should not automatically be interpreted as final net profit.

Actual business profitability can be affected by operating expenses, taxes, discounts, returns, marketplace fees, marketing, fulfillment, warehousing and other costs not represented in this simple product-level calculation.

For importers & buyers

Before Setting a Selling Price from Markup

A target markup can help establish a preliminary selling price, but commercial pricing should also consider the market, customer, channel and full cost structure.

Use the right cost basis

For imports, consider whether factory cost or landed cost is the more useful figure for the decision.

Check gross margin

Do not assume markup and margin are the same percentage.

Allow for discounting

Calculate profitability at realistic promotional or negotiated selling prices.

Include channel costs

Marketplace, payment, fulfillment and sales commissions may materially reduce contribution.

Consider inventory risk

High markup does not eliminate the financial cost of slow-moving or obsolete inventory.

Compare market pricing

A mathematically attractive selling price still needs to be commercially viable in the target market.

Source with Primeval

Need Better Factory Pricing for Your Target Markup?

Primeval helps international buyers source home textiles from India. If you know your target selling price and required commercial markup, share your product specification and target factory cost with Primeval.

Actual sourcing feasibility depends on material, construction, dimensions, workmanship, quantity, packaging and commercial terms.

Target-price sourcing
Home textile factory pricing
Cushion and pillow sourcing
Rug and carpet sourcing
Curtain sourcing
Bedding sourcing
Throws and decorative textiles
Custom product development
Private-label manufacturing
MOQ discussion
Sampling support
Packaging requirements
Production planning
Export sourcing from India

Buyer questions

Markup Calculator FAQs

Helpful answers about calculations, sourcing estimates and commercial planning.

What is markup?

Markup is the amount added above product cost, usually expressed as a percentage of cost.

How do you calculate markup percentage?

Subtract cost price from selling price to calculate profit, divide that profit by cost price, and multiply by 100.

What is the markup formula?

Markup percentage = ((Selling Price − Cost Price) ÷ Cost Price) × 100.

How do I calculate selling price from markup?

Multiply cost by one plus the markup percentage expressed as a decimal. For example, a $100 cost with a 50% markup gives a $150 selling price.

What is the difference between markup and margin?

Markup measures profit relative to cost, while gross margin measures profit relative to selling price.

Is 50% markup the same as 50% margin?

No. A 50% markup on a $100 cost produces a $150 selling price and a gross margin of approximately 33.3%.

What markup gives a 50% gross margin?

A 100% markup gives a 50% gross margin. For example, a $100 cost sold for $200 produces $100 profit, which is 100% of cost and 50% of selling price.

What gross margin does a 100% markup produce?

A 100% markup produces a 50% gross margin.

What selling price results from a 25% markup?

Multiply cost by 1.25. A $100 cost with a 25% markup produces a $125 selling price.

What selling price results from a 50% markup?

Multiply cost by 1.5. A $100 cost with a 50% markup produces a $150 selling price.

What selling price results from a 100% markup?

Multiply cost by 2. A $100 cost with a 100% markup produces a $200 selling price.

Can markup be more than 100%?

Yes. A markup above 100% means the profit amount is greater than the original cost. For example, a $10 product sold for $25 has a 150% markup.

Can markup be negative?

Yes mathematically. If selling price is below cost, the product generates a loss rather than positive markup.

Should I calculate markup on factory price or landed cost?

For imported products, landed cost often provides a more complete commercial basis because factory price may exclude freight, duty and other import-related costs.

What is landed cost?

Landed cost is a broader estimate of what imported merchandise costs after relevant product, freight, duty, taxes, insurance, customs and other expenses are considered.

Does this markup calculator include shipping?

Not automatically. If shipping should form part of your cost basis, include it in the cost figure or calculate landed cost first.

Does markup equal profit?

No. Profit is normally a monetary amount, while markup expresses that profit as a percentage of cost.

Does this calculator show profit per unit?

Yes. It calculates selling price minus cost price to show the estimated profit per unit.

Does this calculator show gross margin?

Yes. Gross margin is calculated as profit divided by selling price.

Is gross margin the same as net profit margin?

No. The calculator's gross margin is based only on the entered product cost and selling price. Net profit can require deduction of wider business expenses.

Can wholesalers use this calculator?

Yes. Wholesalers can use it to evaluate product costs, wholesale selling prices and unit economics.

Can retailers use this calculator?

Yes. Retailers can use the calculator to compare merchandise cost, retail price, markup and gross margin.

Can importers use this calculator?

Yes. Importers can use landed cost per unit as the cost input and compare it with expected wholesale or retail selling prices.

Can private-label brands use this calculator?

Yes. Private-label businesses can use it for preliminary pricing analysis after determining an appropriate cost basis.

What is a good markup for home textiles?

There is no universal percentage. Appropriate markup depends on category, selling channel, competition, operating costs, discounting, inventory turnover and target profitability.

Does a higher markup always mean a better product?

No. Markup describes pricing economics, not product quality.

Does a high markup guarantee business profitability?

No. Actual profitability can also depend on marketing, staff, warehousing, returns, payment fees, fulfillment, taxes and other expenses.

Can I use a target markup to calculate my selling price?

Yes. Leave selling price at zero and enter your cost and target markup. The calculator can estimate the required selling price.

Can the calculator use USD, EUR, GBP or INR?

Yes. Select the currency used for the cost and selling-price inputs. The calculator does not perform live currency conversion.

Is the result a recommended retail price?

No. The result is a mathematical pricing estimate. Actual selling price should also consider competition, customer demand, channel strategy, taxes and commercial positioning.

Continue calculating

More Pricing, Profit & Import Calculators

View all calculators →

Home Textile Sourcing from India

Know Your Target Cost? Find the Right Factory Price.

Share your product specification, quantity, target cost and destination market with Primeval. Use your markup calculation to establish commercial targets, then move from theoretical pricing to an actual sourcing discussion.

Request Factory Price Explore Primeval