Retail Markup Calculator
Convert a retail markup into the margin it produces, allowing for discount and tax.
About Retail Markup Calculator
Markup is applied to cost while margin is measured against price, so the two are never equal: a 120% markup is a 54.5% margin. Any discount comes off the selling price and therefore reduces margin faster than it reduces price. Pricing from a target margin rather than a markup is what stops a retail range being sold at a loss once discounts are applied.
Formula
Retail Markup
Retail Price = cost × (1 + markup %); margin % = profit ÷ selling price
- Cost price
- What the unit costs you
- markup
- Uplift applied to cost
Worked example
With the default values below, Retail Markup Calculator returns Retail Price of $60.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Cost priceminimum 0
- 30
- Markup on costaccepts 0–2,000 %
- 100 %
- Expected discount off listaccepts 0–100 %
- 0 %
- Tax added at saleaccepts 0–100 %
- 0 %
Results
- Retail Price
- $60.00
- Gross Profit per Unit
- $30.00
- Gross Margin
- 50.00%
- Net Price After Discount
- $60.00
- Price Including Tax
- $60.00
Step by step
- 1Values used
- 2Retail Markup
- 3Retail Price= 60.00
- 4Gross Profit per Unit= 30.00
- 5Gross Margin= 50.00
- 6Net Price After Discount= 60.00
- 7Price Including Tax= 60.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Retail Markup calculated?
Retail Price = cost × (1 + markup %); margin % = profit ÷ selling price Markup is applied to cost while margin is measured against price, so the two are never equal: a 120% markup is a 54.5% margin. Any discount comes off the selling price and therefore reduces margin faster than it reduces price.
Why does Retail Markup matter?
Pricing from a target margin rather than a markup is what stops a retail range being sold at a loss once discounts are applied.
What values do I need to enter?
This calculator takes 4 inputs: Cost price, Markup on cost, Expected discount off list, Tax added at sale. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.