Markup is how much you add on top of what a product costs you. Enter the cost and a markup percentage to get the selling price, or work backwards from a price you already charge.
Markup calculator
Product cost only. Fees, shipping and ads aren't included, so this is gross, not net.
A $20 product marked up 60% sells for $32, which is $12 of profit. The same sale is a 37.5% gross margin, because margin divides profit by the price instead of the cost.
To find the price from a markup, multiply cost by 1 plus the markup: $20 × 1.6 = $32. To find the markup you're already charging, divide profit by cost.
The trap is mixing the two up. Marking a product up 50% doesn't give you a 50% margin. It gives you a 33.3% margin. If you want to keep half of every sale, you need a 100% markup.
| Markup | Gross margin it produces |
|---|---|
| 25% | 20.0% |
| 50% | 33.3% |
| 100% | 50.0% |
| 150% | 60.0% |
Convert either way: margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). Or use the gross margin calculator to start from a margin target.
Markup only accounts for the cost of the product. Payment fees, shipping, packaging and ad spend all come out of the profit it leaves, so a markup that looks generous can vanish once you sell online. Run a real order through the Shopify profit margin calculator before settling on a price.