Markup and margin calculator

Markup is how much you add to the cost, as a percentage of the cost. Formula: (price − cost) ÷ cost × 100. You bought an item for $9.6 and sell it for $24: (999 − 400) ÷ 400 × 100 ≈ 150%.

Price with a set markup: cost × (1 + markup ÷ 100). To sell an item for $9.6 with a 100% markup, you set the price at $19. It's more accurate to include not only the purchase price but also delivery to you and packaging in the cost.

Margin is calculated from price, not cost: (price − cost) ÷ price × 100. So margin is always less than markup and never reaches 100 %. A 100 % markup is a 50 % margin; 200 % markup is about 67 % margin.

Confusing them is a common mistake: someone wants "50 % profit," sets 50 % markup, and gets only 33 % margin. The table under the calculator shows this difference for your cost.

In cash on delivery e-commerce, profit per unit isn't money in hand yet. You need to cover ad spend per order, cash on delivery commission, and shipping for unclaimed parcels. So markup is calculated backwards: what does one completed order cost, accounting for approval rate and pickup rate.

Calculate the price here first, then verify the full picture in the unit economics calculator, and check the carrier commission in the cash on delivery commission calculator. When the numbers match — build a landing page with order form and discounted price block using the link to your product card.