E-commerce Markup Calculator
Calculate dollar markup, markup multipliers, and resulting profit margins from product cost, and benchmark against competitor pricing.
100% = 2x keystone, 200% = 3x
Retail Markup Formula
Selling Price = Cost × (1 + Markup %); Dollar Markup = Selling Price - Cost; Profit Margin = Dollar Markup / Selling Price × 100- Markup Percentage: Percentage added on top of your landed product cost.
- Markup Multiplier: Factor used to quickly calculate price (e.g. 100% markup = 2.0x multiplier; 200% markup = 3.0x multiplier).
- Resulting Margin: Profit expressed as a percentage of the final retail price.
- Competitor Delta: Variance between your calculated price and competitor price.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Landed cost includes unit manufacturing and inbound shipping/customs duties.
- Markup is applied directly to unit cost.
Frequently Asked Questions
What is the most common markup in e-commerce?
Most direct-to-consumer (D2C) brands aim for a 3x to 5x markup on manufacturing cost (200% to 400% markup) to allow sufficient margin for paid ads, shipping, returns, and merchant fees.
Can markup be higher than 100%?
Yes. Markup has no upper limit. A product costing $10 sold for $50 has a 400% markup ($40 markup / $10 cost), which equates to an 80% profit margin.
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