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Markup Calculator

Finance Tool
Gross Profit
.00
Gross Margin
33.33%
Markup
50.00%
Tip: Margin is profit relative to sales price. Markup is profit relative to cost.

What is a Markup Calculator?

A Markup Calculator shows how much profit you make on a product or service relative to its cost. Enter your cost price and selling price and the calculator returns gross profit in dollars, gross margin as a percentage of revenue and markup as a percentage of cost. Run it before setting or changing any price. No data is sent to any server.

How to use the Markup Calculator

Enter your cost and selling price. Gross profit, margin and markup update automatically.
  1. Enter the cost of goods. Add the amount you spend to buy, make or deliver the product or service. If your cost is $50, enter 50.
  2. Enter the revenue or selling price. Add the amount you charge the customer. If your selling price is $75, enter 75.
  3. Check the gross profit. The calculator subtracts cost from revenue and shows your gross profit in dollars.
  4. Check the gross margin. Gross margin shows profit as a percentage of the selling price.
  5. Check the markup. Markup shows profit as a percentage of the cost.
  6. Copy or download the report. Click Copy Summary to copy the results. Click Download .txt to save a full report. The file includes your cost and revenue figures alongside profit, margin and markup.

Markup Calculator formulas

The calculator uses three standard pricing formulas.
Gross Profit = Revenue Price - Cost Price
Gross Margin = (Gross Profit / Revenue Price) × 100
Markup = (Gross Profit / Cost Price) × 100
Example:
Cost = $50
Revenue = $75
Gross Profit = $25
Gross Margin = 33.33%
Markup = 50.00%

Gross margin vs markup

Gross margin and markup are related but they are not the same figure.
  • Gross margin compares profit to the selling price. It tells you what percentage of revenue remains after cost.
  • Markup compares profit to the cost. It tells you how much you added above the cost to reach the selling price.
The most common mistake is using both terms interchangeably. Because they use different bases, a 50% markup on a product does not mean a 50% gross margin. The calculator shows both figures side by side so you never confuse the two.

Typical markup percentages by industry

Markup varies significantly across product categories and service types. The table below shows typical markup ranges used in common industries. Use the calculator above to check whether your own prices fall within a competitive range or need adjustment.
Industry or product type Typical markup range Notes
Physical products
Grocery and food retail 5% – 15% Thin margins driven by competition and perishability
Clothing and apparel 50% – 300% Higher markups cover branding, returns and seasonal risk
Consumer electronics 6% – 30% Low margin category with high competition
Furniture and home goods 100% – 400% Showroom costs and low turnover justify higher markups
Jewellery and accessories 100% – 300% High perceived value and low stock volume
Books and media 15% – 40% Publisher pricing structures limit retailer markup
Health and beauty 40% – 200% Wide range depending on brand positioning
Digital and software products
WordPress plugins and themes 200% – 1000%+ Near-zero marginal cost on digital delivery
Online courses 500% – 2000%+ Production cost is fixed. Each sale adds to margin
SaaS subscriptions Variable Measured by LTV and churn rather than unit markup
Stock photos and digital downloads 300% – 900% Low distribution cost and unlimited units
Services and agency work
Freelance design or development 50% – 150% Markup on time cost vs client billing rate
Digital marketing agency 20% – 50% Applied to ad spend and media costs passed to clients
Web hosting reseller 50% – 200% Markup on wholesale hosting cost
IT support and managed services 30% – 100% Includes labour and tooling overhead
Food and hospitality
Restaurant food items 200% – 500% Labour, rent and wastage are absorbed in the markup
Coffee and cafe drinks 300% – 800% Ingredient cost is low relative to selling price
Alcohol at bars and restaurants 200% – 400% Licensing costs and consumption context drive premium
WooCommerce and ecommerce
Dropshipping products 15% – 45% Supplier pricing limits markup headroom
Private label physical products 100% – 300% Branding and manufacturing control allow higher markup
Print-on-demand products 30% – 100% Per-unit fulfilment cost sets the floor
These ranges are industry averages and will vary by market, location and business model. Use them as a starting benchmark rather than a fixed target.

Where to use the Markup Calculator

Use the calculator whenever you need to set or verify pricing before it goes live.

Product pricing

Check whether a product price gives you enough profit after cost. Useful when cost varies per unit across physical products, handmade goods and digital downloads.

WooCommerce stores

Run the calculator before adding or updating WooCommerce product prices. Knowing the exact markup and margin before publishing prevents underpriced products from slipping through.

Service packages

Estimate profit on services by entering your delivery cost and the price charged to the client. Useful for retainers, design packages and setup services where billable hours are the primary cost.

Discount planning

Test a lower selling price before running a sale to see how it affects margin. If the margin drops below your minimum, adjust the discount before publishing. When the price is confirmed, use the coupon code generator to create promo codes for the campaign.

Reports and client notes

Use the Download .txt option to save a simple markup report for internal notes, client approvals or pricing records.

Manual calculation vs using this calculator

Calculating markup and margin manually is straightforward when you have one product. When you have several prices to check or need to share results quickly, the manual process slows you down. The calculator returns gross profit, gross margin and markup in under a second. Copy the summary directly or download the report as a text file. No reformatting and no formula errors.

Use the Markup Calculator with Spexo Addons for Elementor

Confirm pricing before it goes live on your WordPress or WooCommerce site. The calculator works alongside Elementor so you can verify numbers in the browser before publishing.

Pricing tables and price lists

Check profit, margin and markup before adding prices to the Spexo Addons Pricing Table and Price List widgets. Accurate pricing makes packages easier to communicate and easier to manage.

WooCommerce product sections

Run the calculator before publishing product grids, sliders or product detail sections. Confirm each selling price supports your margin targets before the page goes live.

Landing pages and offers

Check the promotional price against your cost before building a discount banner or offer block. This keeps sale pricing profitable rather than just attractive.

FAQs about Markup Calculator

Yes. The tool is free to use in your browser. You can calculate profit, margin, and markup without signup.
It calculates Gross Profit, Gross Margin, and Markup from your cost price and revenue or selling price.
The markup formula is Markup = (Gross Profit / Cost Price) × 100. If your cost is $50 and your profit is $25, the markup is 50%.
The gross margin formula is Gross Margin = (Gross Profit / Revenue Price) × 100. If your revenue is $75 and your profit is $25, the gross margin is 33.33%.
Margin is profit compared to the selling price. Markup is profit compared to the cost. That is why the same product can show 33.33% margin and 50% markup.
Yes. Click Copy Summary to copy the profit, margin, and markup values to your clipboard.
The downloaded report includes the cost, revenue, gross profit, gross margin, and markup. The file is saved as spexo-markup-calculator.txt.
Yes. Use it to check product cost, selling price, profit, margin, and markup before publishing WooCommerce products, pricing tables, price lists, product grids, and sales offers.