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To calculate markup, start with two numbers: your product cost and your intended selling price. Subtract cost from selling price to find profit. Then divide profit by cost and multiply by 100.
The formula looks like this: markup equals selling price minus cost, divided by cost, then multiplied by 100.
For example, if a product costs 40 dollars and you want to sell it for 60 dollars, the profit is 20 dollars. Divide 20 by 40 and you get 0.5, which means the markup is 50 percent.
This formula is useful because many ecommerce sellers begin from supplier cost, packaging cost, or landed cost, then decide how much to add before listing a product. That makes markup a natural planning metric.
Still, markup alone is not enough. A high markup does not always mean a healthy business once shipping, platform fees, payment fees, discounts, and ad spend are included. After calculating markup, review profit margin as a second check.
A practical workflow is simple. First, estimate your real cost as accurately as possible. Second, test a selling price. Third, check markup and margin together. Fourth, revise the price until the result fits your catalog, traffic source, and customer expectations.
The Markup Calculator on this site speeds up that process and helps you compare different selling prices before publishing a product page.
How to calculate markup for ecommerce products
A simple guide to the markup formula for ecommerce products, with step-by-step examples for cost-based pricing.
The formula looks like this: markup equals selling price minus cost, divided by cost, then multiplied by 100.
For example, if a product costs 40 dollars and you want to sell it for 60 dollars, the profit is 20 dollars. Divide 20 by 40 and you get 0.5, which means the markup is 50 percent.
This formula is useful because many ecommerce sellers begin from supplier cost, packaging cost, or landed cost, then decide how much to add before listing a product. That makes markup a natural planning metric.
Still, markup alone is not enough. A high markup does not always mean a healthy business once shipping, platform fees, payment fees, discounts, and ad spend are included. After calculating markup, review profit margin as a second check.
A practical workflow is simple. First, estimate your real cost as accurately as possible. Second, test a selling price. Third, check markup and margin together. Fourth, revise the price until the result fits your catalog, traffic source, and customer expectations.
The Markup Calculator on this site speeds up that process and helps you compare different selling prices before publishing a product page.
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Useful tools
Profit Margin Calculator
Calculate profit, cost, and margin for ecommerce, Shopify, Amazon, Etsy, or independent store products.
Markup Calculator
Use this free markup calculator to compare cost, selling price, markup, profit, and margin before publishing a product price.
Discount Calculator
Use this free discount calculator to find discount amount, final price, and savings before running a sale or promotion.
Break Even Calculator
Use this free break-even calculator to estimate break-even units, contribution margin, and revenue before launching or pricing a product.
Shipping Cost Calculator
Use this free shipping cost calculator to estimate carrier cost, packaging cost, and total shipping cost before setting product prices.
Ecommerce Profit Calculator
Calculate profit per order after product cost, shipping, fees, and ad cost.