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Margin and markup for a store price

Free tool · Retail

See your margin and markup on a shelf price, or find the price that hits your target. A 40% margin needs a 67% markup, so check which one your supplier or your price list means.

What one item costs you. Example: 12.50.
The price on the shelf today. Example: 19.99.
Type 35 for 35%.
Type 50 for 50%.

Margin at your price

37.5%

Markup at your price

59.9%

Profit per item

$7.49

Price for your target margin

$19.23 (markup 53.8%)

Price for your target markup

$18.75 (margin 33.3%)

An estimate for planning. Check the numbers with your accountant before you decide.

How the math works

Profit = price − cost. Margin = profit ÷ price. Markup = profit ÷ cost.

Price for a target margin = cost ÷ (1 − margin). Price for a target markup = cost × (1 + markup). Both round to the cent.

Margin is your profit as a share of the selling price, and markup is your profit as a share of your cost. The example is an item that costs you $12.50 and sits on the shelf at $19.99.