/ /Target Markup Pricing Calculator
Target Markup Pricing Calculator
Price with a markup rule and instantly see the equivalent margin. Compare your markup price against competitors to check whether a cost-based rule survives market reality.
Markup Target Inputs
Unit Cost ($)
Target Markup (%) 100% = keystone (double the cost)
Competitor Price ($)
Markup-Based Price
Unit Cost$20.00
Target Markup150%
Markup Price$50.00
Profit per Unit$30.00
Equivalent Margin60.0%
vs Competitor-9.1%
Markup price check: A 150% markup prices you at $50.00, equal to a 60.0% margin. Within 5% of the competitor — the markup rule holds.
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Authoritative References
Frequently Asked Questions
What is the markup pricing formula?
Price = Cost x (1 + Markup). A $20 cost with 150% markup gives $20 x 2.5 = $50. Markup is intuitive for buyers and category managers because it reads directly off cost.
How do you convert markup to margin?
Margin = Markup / (100 + Markup) x 100. A 150% markup equals a 60% margin. Bookmark this conversion — mixing the two up is the most common pricing error in ecommerce.
What markup do ecommerce sellers typically use?
Common ecommerce markups run 2-4x cost (100-300% markup, or 50-75% margin) depending on fees and ad spend. Electronics run leaner at 30-70% markup; beauty and accessories often exceed 200%.
When is markup pricing dangerous?
When percentage fees, shipping, or ad costs are large, a fixed markup silently shrinks true margin. Re-check every markup price with margin math that includes all variable deductions.
Should I match competitor prices from a markup rule?
Use markup for the floor, then adjust to market: price within 5% of key competitors when parity matters, premium-price with proof (reviews, warranty, bundles), or walk away from unprofitable price wars.