What is a Markup & Margin Calculator?
A markup & margin calculator is a tool that helps businesses figure out the selling price of a product based on cost, markup percentage, or profit margin. It instantly shows:
Cost of goods sold (COGS)
Markup % (profit as a % of cost)
Margin % (profit as a % of selling price)
Profit per unit ($)
Final selling price with or without sales tax
This version also factors in shipping, packaging, overheads, platform fees, discounts, and rounding rules — so you can price products correctly in the US market.
Why Use This Calculator?
Setting the right price is critical. With this tool, you can:
✅ Cover all costs (COGS, shipping, fees, overheads)
✅ Apply markup %, margin %, or profit target
✅ Test discounts and competitor pricing
✅ Round prices to .99 or .95 for retail psychology
✅ Get accurate profit and margin figures instantly
How to Use the Calculator
- Enter your product cost (COGS).
- Add shipping, packaging, and other costs.
- Choose your target: margin %, markup %, or profit in dollars.
- Enter fees (e.g., Amazon, Shopify, PayPal).
- (Optional) Add a sales tax % for your state.
- Pick a rounding rule (e.g., $19.99).
- Hit Calculate to see your selling price, profit, margin, markup, and breakdown.
Example Calculations
- Example 1: Margin Target
Cost $50, margin 30%, sales tax 8% →
Price before tax = $71.43, price incl. tax = $77.14.
Profit = $21.43, Margin = 30%, Markup = 42.9%. - Example 2: Markup Target
Cost $20, markup 50% →
Selling price = $30.00, Profit = $10, Margin = 33.3%. - Example 3: Competitor Check
Your cost $40, competitor price $60 →
Your margin = 16.7%. To hit 30% margin, you’d need to charge more.
Common Mistakes in Pricing
❌ Forgetting marketplace & payment fees (Amazon, eBay, PayPal).
❌ Ignoring sales tax (varies by state; must be added at checkout in many states).
❌ Mixing up markup and margin.
❌ Running discounts without checking new margin.
❌ Forgetting psychological pricing (ending in .99 or .95).
FAQ – Markup & Margin Explained
- What’s the difference between markup and margin?
- Markup = profit ÷ cost × 100.
- Margin = profit ÷ selling price × 100.
Example: Cost $20, Price $30, Profit $10 → - Markup = 50%, Margin = 33.3%.
- Do US businesses include sales tax in the price?
In most states, sales tax is added at checkout, not included in the sticker price. This calculator lets you add a tax % if you want to simulate customer checkout totals. - How do I calculate selling price from margin?
Formula: Price = Cost ÷ (1 − Margin%).
E.g., Cost $40, Margin 25% → Price = $53.33. - Should I use markup or margin?
Businesses usually report margin. Markup is often used in retail buying decisions. - What rounding rule is best?
In the US, $9.99, $19.99, $99.95 are common in retail. B2B pricing often rounds to the nearest $1 or $5.
