💰 Markup Calculator

Calculate markup from a target profit margin, and compare with industry benchmarks

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Enter the direct cost to produce or purchase one unit

Example: 40% margin means price = cost ÷ (1 − 0.40)

The price you currently charge or plan to charge

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How it works What we calculate AI analysis

How the Markup Calculator Works

Purpose: help you set (or sanity-check) selling prices by translating between profit margin and markup, then comparing your numbers with industry benchmarks for quick context.

Inputs you provide

  • Industry/Niche: picks a reference benchmark for average markup and margin (used for the comparison banner).
  • COGS (Cost of Goods Sold): your per-unit direct cost (materials, manufacturing, purchase cost).
  • Calculation Method:
    • Margin → Price: enter a target profit margin %; we compute the selling price needed to hit that margin.
    • Price → Margin: enter a current selling price; we compute the margin and markup you’re actually achieving.

What the tool calculates

  • Selling Price (if you chose margin → price) using: Price = COGS ÷ (1 − Margin%)
  • Gross Profit per unit: Price − COGS
  • Profit Margin % (share of price that’s profit): (Price − COGS) ÷ Price × 100
  • Markup % (profit relative to cost): (Price − COGS) ÷ COGS × 100
  • Benchmark comparison: we show whether your markup is above/near/below your industry’s typical level.

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Disclaimer: Benchmarks are directional and may not fit every business model. This tool does not account for all indirect costs (e.g., overhead, payment fees, shipping, returns, taxes) unless you include them in your COGS. Treat outputs as planning references, not financial advice. Always validate prices with your unit economics, competition, and customer feedback.