FREE TOOL · NO SIGNUP REQUIRED

Free Markup Calculator

Calculate markup, gross margin, and selling price. Convert between markup % and margin % instantly.

Use this free markup calculator to find the right selling price from your cost, convert between markup % and margin %, and benchmark across DTC verticals.

✓ Free to use✓ No signup✓ Built for DTC brands✓ Updates in real time

🏷️ Your Pricing

Cost (COGS per unit)

Product cost + packaging

Selling Price

What the customer pays

Target Markup % (Optional)

Calculate price from cost + target markup

Target Margin % (Optional)

Calculate price from cost + target margin

📊 Your Markup & Margin

Markup

200%

Price $60 vs Cost $20

Gross Margin %

66.7%

Profit Per Unit

$40.00

Cost as % of Price

33.3%

Break-Even ROAS

1.5x

Price for 50% Margin

$40.00

Price for 70% Margin

$66.67

Pricing leaving margin on the table?

TGM manages $314M+ in DTC ad spend across 200+ brands

We build pricing + offers that protect margin while scaling revenue — the foundation of profitable DTC growth.

Get a Free Strategy Call →

Trusted by 200+ DTC brands

Markup formula: (Price − Cost) ÷ Cost × 100. Different from margin (which uses Price as denominator).
100% markup = 50% margin. Markup is always higher than margin for the same price. Don’t confuse them.
DTC markup benchmarks: Apparel 100–200%, Beauty 200–500%, Health 200–400%, F&B 75–150%, Subscription 300%+.
Markup × Cost = Price. For target margin, use Cost ÷ (1 − margin). 50% margin: Cost ÷ 0.5.
Highest-leverage moves: negotiate volume COGS, raise prices selectively, premium positioning, value-add bundles.

Jump To

DTC Markup Benchmarks by Vertical

Median markup % across DTC verticals. Higher markup = higher margin = more room for paid acquisition costs.

Vertical	Median Markup	Equivalent Margin	Best in Class
Apparel & Fashion	120%	55%	250%+
Beauty & Skincare	250%	72%	500%+
Health & Supplements	200%	67%	400%+
Food & Beverage	100%	50%	200%+
Home & Garden	140%	58%	250%+
Electronics & Tech	65%	40%	120%+
Pet Products	165%	62%	300%+
Subscription / Recurring	355%	78%	600%+

Source: TGM client portfolio across 200+ DTC accounts. Subscription brands skew highest because retention compounds margin. Below 100% markup, paid scaling is challenging.

Markup vs. Margin vs. Profit — The 3 pricing metrics explained

Metric	What it measures	Formula	When to use it
Markup %	How much you add ABOVE cost	(Price − Cost) ÷ Cost × 100	Pricing-from-cost (wholesale, retail)
Gross Margin %	What % of revenue is profit	(Price − Cost) ÷ Price × 100	Profitability comparison + paid media math
Profit Per Unit	Dollar profit per sale	Price − Cost	Per-order economics
Contribution Margin	Profit after ALL variable costs (incl. ad spend)	(Price − Variable Costs) ÷ Price × 100	True DTC unit economics

Markup ≠ Margin. 100% markup = 50% margin. 200% markup = 67% margin. 50% markup = 33% margin. Always know which one you’re using.

What Is Markup and How Does It Differ from Margin?

Markup is the percentage you add to your cost to set the selling price. Markup uses Cost as the denominator; margin uses Price. They describe the same gap but from different angles. A product with $20 cost selling for $60 has 200% markup (60-20=40, 40/20=200%) and 67% margin (40/60=67%). Always know which one you’re using — getting them confused is one of the most common DTC pricing mistakes.

The Markup Formula

Markup % = (Price − Cost) ÷ Cost × 100

To find PRICE from cost + target markup: Price = Cost × (1 + Markup%). $20 cost × (1 + 200%) = $60. To find PRICE from cost + target margin: Price = Cost ÷ (1 − Margin%). $20 ÷ (1 − 0.5) = $40 for 50% margin.

How Markup Connects to Margin and Pricing Strategy

The relationship between markup and margin is fixed: Margin = Markup ÷ (1 + Markup). 100% markup = 50% margin. 200% markup = 67% margin. 50% markup = 33% margin. The bigger the markup, the smaller the difference matters — at 1000% markup, both metrics approach the same number. For DTC pricing decisions, use MARKUP when working from cost up (e.g., wholesale pricing) and MARGIN when calculating profitability from revenue down. Both matter for different reasons.

What Is a Good Markup for DTC Brands?

Vertical-dependent. Beauty + Health: 200–500% markup (67–83% margin) supports premium positioning + heavy paid acquisition. Apparel: 100–200% markup (50–67% margin) typical. F&B: 75–150% markup (43–60% margin), thin because of perishability + commodity pressure. Electronics: 50–100% markup (33–50% margin), thinnest of any DTC vertical. Subscription: 300%+ markup typical because LTV compounds. Below 100% markup (50% margin), paid scaling is challenging without strong retention.

Diagnose: is your markup too low?

Run through these in order. The first “yes” usually points at the highest-leverage fix.

If markup is below 100% (margin < 50%)

Paid scaling will be hard. Negotiate volume COGS, raise prices selectively, or shift to higher-margin SKUs. Aim for 100%+ markup minimum for DTC.

If you’re competing on price

Race to the bottom kills markup. Position via brand, story, ingredients, or experience — not lowest price. Premium positioning typically supports 50–100% higher markup than category median.

If you haven’t tested a 10% price lift

Most DTC brands have 5–15% pricing power they aren’t using. A 10% price lift on stable COGS lifts markup by ~20–30 percentage points and lifts margin 5–7 points.

If you’re using markup instead of margin in paid media math

Common mistake. Use MARGIN (denominator = Price) for break-even ROAS and max CPA calculations. Markup is for pricing-from-cost only.

If COGS is > 50% of selling price

Markup is artificially capped by high COGS. Negotiate volume contracts, find alternative suppliers, or raise prices. 5 points of COGS recovery typically lifts markup 20–30 percentage points.

If you discount > 20% on first orders

Heavy promo destroys effective markup. A 50% margin item at 20% off has only 35% effective margin. Switch to free-shipping or value-add offers.

10 ways to lift markup + margin this quarter

Test 10% price lifts on hero products. Most DTC brands have 5–15% pricing power they aren’t using.
Negotiate volume COGS contracts. 5 points of COGS reduction at $1M+ inventory = 20–30 markup-point lift.
Add a premium SKU at 50–100% above hero price. Even 10% adoption lifts blended markup substantially.
Build hero bundles with bundle discount < 15%. Increases AOV without destroying markup.
Reposition via brand + story + imagery. Premium positioning supports 50–100% higher prices.
Replace % discounts with value-add offers. Free shipping converts as well as 20% off but protects markup.
Cut underperforming low-markup SKUs. Drag blended markup; focus catalog on hero products.
Add subscription option. Subscription orders carry markup compounding via lifespan.
Renegotiate payment processing. Custom Stripe rates at $5M+ revenue save 0.3–0.5%.
Move fulfillment to closer 3PL zones. Cuts shipping costs 20–30%, indirectly lifting effective markup.

What this calculator cannot tell you

Demand elasticity. Higher markup may reduce conversion. Test before assuming.
Returns / chargebacks. Net markup should subtract return cost + chargeback fees.
Mix-shift effects. Multiple SKUs with different markups blend; single-SKU markup hides in averages.
Promotional impact. Heavy promo cohorts have effective markup 30–50% lower.

Markup glossary

Markup: (Price − Cost) ÷ Cost × 100. Percentage added to cost to set price.
Gross Margin: (Price − Cost) ÷ Price × 100. Percentage of revenue that’s profit.
Markup vs Margin: Markup uses COST as denominator; margin uses PRICE. 100% markup = 50% margin.
Cost (COGS): Cost of Goods Sold. Direct cost to produce one unit including materials, manufacturing, packaging.
Selling Price: What the customer pays. Cost × (1 + Markup%) = Price. Or Cost ÷ (1 − Margin%) = Price.
Profit Per Unit: Selling Price − Cost. The dollar margin on each sale.
Contribution Margin: Margin after ALL variable costs (COGS + shipping + fees + ads). Use our Contribution Margin Calculator.
Break-Even ROAS: 1 ÷ Gross Margin. Minimum ROAS to cover product costs. Use our ROAS Calculator.
Premium Positioning: Pricing 50–100% above category median via brand, story, ingredients, experience.
Pricing Power: How much you can raise prices without losing demand. Most DTC brands have 5–15% unused pricing power.

We have built profitable pricing for 200+ DTC brands

If your markup is below benchmark, we’ll show you exactly which lever lifts it fastest — calc-driven, free, no obligation.

Book a Free Pricing Audit →

Frequently Asked Questions

How is markup calculated?

Markup % = (Price − Cost) ÷ Cost × 100. Example: $60 price − $20 cost = $40 ÷ $20 = 200% markup. The calculator above also shows equivalent margin %, profit per unit, and break-even ROAS.

What's the difference between markup and margin?

Markup uses Cost as denominator (Cost ÷ Price difference). Margin uses Price as denominator. 100% markup = 50% margin. 200% markup = 67% margin. 50% markup = 33% margin. Don't confuse them — they describe the same gap from different angles.

What's a good markup for DTC eCommerce?

Vertical-dependent. Beauty/Health: 200-500% (67-83% margin). Apparel: 100-200% (50-67% margin). F&B: 75-150% (43-60% margin). Subscription: 300%+. Below 100% markup (50% margin), paid scaling is challenging.

How do I calculate selling price from markup?

Price = Cost × (1 + Markup%). Example: $20 cost × (1 + 200%) = $60 selling price. To go from cost + target margin: Price = Cost ÷ (1 − Margin%). $20 ÷ (1 − 0.5) = $40 for 50% margin.

Should I use markup or margin in my paid media math?

Use MARGIN. Break-even ROAS = 1 ÷ gross margin. Max profitable CPA = contribution margin minus target profit. Markup is for pricing-from-cost; margin is for profitability + paid media math.

What's the markup formula?

Markup % = ((Selling Price − Cost) ÷ Cost) × 100. Selling Price = Cost × (1 + Markup as decimal). For example: $25 cost with 100% markup = $25 × 2 = $50 selling price.

How do I increase my markup?

Five biggest moves: (1) negotiate volume COGS contracts, (2) raise prices selectively (most brands have 5-15% pricing power), (3) add premium SKUs, (4) reposition via brand + premium imagery, (5) replace discounts with value-add offers.

Why is my margin lower than my markup?

That's normal — margin is always lower than markup for the same price. 100% markup = 50% margin. The math: Margin = Markup ÷ (1 + Markup as decimal). 100% markup ÷ 2 = 50% margin. 200% markup ÷ 3 = 67% margin.

Can markup be over 100%?

Yes — most DTC brands run 100-500% markup. Beauty/skincare brands often run 300-500% markup (75-83% margin) because they support premium pricing + heavy paid acquisition. Subscription brands hit 400%+ because retention compounds.