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Free Markup Calculator

Q: How do you calculate a markup?

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.

Q: What is a 25% markup on $100?

$125. A 25% markup multiplies cost by 1.25, so $100 × 1.25 = $125. The trap: that is a 25% markup but only a 20% margin — the $25 of profit is 25% of the $100 cost but only 20% of the $125 selling price. Pricing off markup and reporting off margin is the single most common source of blown DTC unit economics.

Q: What is a 30% markup?

Multiply your cost by 1.30. A $100 cost becomes a $130 selling price; a $40 cost becomes $52. The resulting margin is always lower than the markup: a 30% markup is a 23.1% margin ($30 profit ÷ $130 price). The gap widens as markup rises — at 100% markup the margin is 50%.

Q: What is a 20% markup on $500?

$600. $500 × 1.20 = $600, giving $100 of gross profit. As a margin that is 16.7% ($100 ÷ $600), not 20%. If you need a true 20% margin on a $500 cost, the selling price is $625, which is a 25% markup.

Q: 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.

Q: 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.

Q: 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.

Q: 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.

Q: 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.

Q: 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.

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

Markup is the percentage added to your cost to set a selling price: (Price − Cost) ÷ Cost × 100. A product costing $40 sold at $100 carries a 150% markup — but a 60% margin. Markup and margin are not interchangeable: markup is measured against cost, margin against revenue. Confusing the two is the most common pricing error in eCommerce.

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

Choose what you want to solve for

You know your cost and your selling price. Get your markup, margin and profit per unit.

🏷️ Your pricing

Cost (COGS per unit)

Product cost + packaging

Selling Price

What the customer pays

Markup % = (Price − Cost) ÷ Cost × 100
Margin % = (Price − Cost) ÷ Price × 100
Same dollar profit, two different percentages. Markup is measured against cost, margin against price — which is why a 100% markup is only a 50% margin.

📊 Your markup & margin

Markup

200.0%

Price $60.00 vs Cost $20.00

Gross Margin

66.7%

Profit Per Unit

$40.00

Multiplier

3.00x

Cost As % Of Price

33.3%

Break-Even ROAS

1.50x

Max CPA

$40.00

✓ Healthy margin — typical premium DTC range.

What you'd charge at other margins

Margin is the number that drives ad profitability. See what return you need with the break-even ROAS calculator, or model fixed costs in the Break-Even Calculator.

🎯 Cost + target markup

Cost (COGS per unit)

Product cost + packaging

Target Markup

How much you want to add on top of cost. 100% doubles it, 200% triples it.

Price = Cost × (1 + Markup% ÷ 100)
A "keystone" markup is 100% — you double the cost. Most DTC brands need 150–300% to fund paid acquisition.

📊 Your price

Selling Price

$60.00

200.0% markup on $20.00 cost

Gross Margin

66.7%

Profit Per Unit

$40.00

Multiplier

3.00x

Break-Even ROAS

1.50x

✓ A 200.0% markup gives you a 66.7% margin.

Markup and margin are not the same number — check the conversion on the Markup & Margin tab, or price from a margin goal instead on Price from Margin.

📐 Cost + target margin

Cost (COGS per unit)

Product cost + packaging

Target Gross Margin

Profit as a percentage of the selling price. Must be under 100%.

Price = Cost ÷ (1 − Margin% ÷ 100)
This is the mode to use if you're pricing to fund ads — margin, not markup, is what determines your break-even ROAS.

📊 Your price

Selling Price

$50.00

60.0% margin on $20.00 cost

Equivalent Markup

150.0%

Profit Per Unit

$30.00

Break-Even ROAS

1.67x

Max CPA

$30.00

✓ A 60.0% margin needs a 150.0% markup.

Price at other margins (cost $20.00)

Now check what that margin means for paid: break-even ROAS calculator.

🧾 Price + margin goal

Selling Price

The price the market will bear

Target Gross Margin

The margin you need to hold

Current Cost — optional

What your supplier quotes today, to see the gap

Max Cost = Price × (1 − Margin% ÷ 100)
Use this before you commit to a supplier or an MOQ — it tells you the highest landed cost that still leaves your margin intact.

📊 What you can pay

Max Cost Per Unit

$17.50

To hold 65.0% margin at a $49.99 price

Profit Per Unit

$32.49

Required Markup

185.7%

Headroom Vs Current

-$2.50

Margin At Current Cost

60.0%

⚠ Your current cost is $2.50 above the ceiling — negotiate COGS or raise price.

Factor in shipping, fees and returns with the Contribution Margin Calculator.

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 do you calculate a markup?

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 is a 25% markup on $100?

$125. A 25% markup multiplies cost by 1.25, so $100 × 1.25 = $125. The trap: that is a 25% markup but only a 20% margin — the $25 of profit is 25% of the $100 cost but only 20% of the $125 selling price. Pricing off markup and reporting off margin is the single most common source of blown DTC unit economics.

What is a 30% markup?

Multiply your cost by 1.30. A $100 cost becomes a $130 selling price; a $40 cost becomes $52. The resulting margin is always lower than the markup: a 30% markup is a 23.1% margin ($30 profit ÷ $130 price). The gap widens as markup rises — at 100% markup the margin is 50%.

What is a 20% markup on $500?

$600. $500 × 1.20 = $600, giving $100 of gross profit. As a margin that is 16.7% ($100 ÷ $600), not 20%. If you need a true 20% margin on a $500 cost, the selling price is $625, which is a 25% markup.

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.

DTC pricing + margin wins from TGM clients

Real CPC efficiency + ROAS lift across paid social, search, and lifecycle.

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How Joovv scaled red-light therapy with creator influencer ads

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$2M+Ad spend scaled

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Read the case study →

Food & Beverage

How F&B brands scaled profitably with paid + email

+64%ROAS

5.6×Revenue

+280%Growth

Meta + Google paid media combined with Klaviyo lifecycle email — profitable scale across coffee, hydration, snacks, and supplements.

Read the case study →

All case studies

See how TGM scales DTC brands

200+DTC brands

$613M+Revenue

$314M+Ad spend

Industry case studies across apparel, beauty, supplements, F&B, pet, home, electronics, and subscription DTC.

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Want a profitable pricing strategy?

Top Growth Marketing helps DTC brands build pricing and offers that protect margin while scaling profitably across paid + email + retention.

Get a Free Strategy Call →

Importing your product? The cost figure this calculator needs is your landed cost — goods plus freight, duty and import fees — not what you pay the factory. Work it out with the landed cost calculator, then bring the number back here.

More Free Marketing Calculators

💹

Free Markup Calculator

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

Trusted by 200+ DTC brands

On This Page

DTC Markup Benchmarks by Vertical

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

What Is Markup and How Does It Differ from Margin?

The Markup Formula

How Markup Connects to Margin and Pricing Strategy

What Is a Good Markup for DTC Brands?

Diagnose: is your markup too low?

10 ways to lift markup + margin this quarter

What this calculator cannot tell you

Markup glossary

We have built profitable pricing for 200+ DTC brands

Frequently Asked Questions

DTC pricing + margin wins from TGM clients

How Joovv scaled red-light therapy with creator influencer ads

How F&B brands scaled profitably with paid + email

See how TGM scales DTC brands

Want a profitable pricing strategy?

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