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Free Markup Calculator for Makers

Calculate your selling price from cost and markup, work out your markup on any sale, and convert between markup and margin — three tools in one.

Want your markup calculated automatically? Craftybase tracks your material costs and shows you real profit per product — no spreadsheets required.

Try free for 14 days

How to Calculate Markup (Quick Answer)

Markup is the amount added to your cost to arrive at a selling price. The formula is: Selling Price = Cost × (1 + Markup% ÷ 100). To find the markup on a product you already sell: Markup% = ((Selling Price − Cost) ÷ Cost) × 100. Markup and margin are different: a 50% markup gives you a 33% margin, not a 50% margin.

Enter your cost and the markup percentage you want to apply. The calculator will show you the selling price and how much profit you make.

$
USD

Not sure of your cost? Craftybase calculates this automatically from your recipes.

%

Selling Price

$18.70

per unit

Your cost
$8.50
Profit
$10.20
Margin
54.5%

Margin is different from markup — see the Markup vs. Margin section below.

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How to Use This Markup Calculator

This calculator has three modes. Use whichever fits your situation — they all update live as you type.

Mode 1: Selling Price from Markup

Use this when you know what a product costs to make and want to figure out what to charge. Enter your cost and the markup percentage you want to apply. The calculator shows you the resulting selling price, your profit in dollar terms, and what margin that works out to.

If you're not sure what markup to use, the markup benchmarks section below gives you typical ranges by product type.

Mode 2: Markup % from Sale Price

Use this to check the markup you're already applying. Enter your cost and your current selling price. The calculator tells you your markup percentage and how much profit you're making per unit. If the number looks lower than you expected, it's often because labor wasn't fully included in the cost.

Mode 3: Margin ↔ Markup Converter

This one trips up makers regularly. If a wholesale buyer says they need "40% margin", they don't mean 40% markup — they mean that 40% of the selling price should be profit. To achieve a 40% margin, you need to apply a 66.67% markup. Enter any margin percentage to see the equivalent markup, or any markup to see the equivalent margin.

Tired of manually tracking your costs?Craftybase calculates your exact cost per product from your ingredients and labor automatically. No more guessing what to put in the cost field.

Try free for 14 days →

What is Markup?

Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of the cost.

If it costs you $10 to make a candle and you sell it for $20, your markup is 100%. You've added 100% of the cost to get your price. The formula is:

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

Selling Price = Cost × (1 + Markup% ÷ 100)

Markup starts from cost. That's the key thing to remember.

What's the Difference Between Markup and Margin?

Markup and margin both measure profitability, but they use different bases — and this trips up makers more than almost any other pricing concept.

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. Same dollar profit, different denominators, different numbers.

CostSelling PriceProfitMarkup %Margin %
$10.00$12.50$2.5025%20%
$10.00$15.00$5.0050%33.3%
$10.00$20.00$10.00100%50%
$10.00$25.00$15.00150%60%

The practical reason this matters: if a boutique buyer tells you they need 40% margin, and you think "ok, I'll use 40% markup" — you've undercut yourself. They'll end up with a 40% margin only if you use a 66.67% markup. Use the converter in Mode 3 any time a buyer quotes in margin terms.

For a deeper look at how margin fits into your overall pricing, our guide on how to price handmade items walks through the full pricing framework.

The Markup Formulas Explained

Here are the four formulas this calculator uses, with worked examples so you can check the math yourself.

Selling price from cost and markup %

You make a bar of soap for $4.25 and want a 150% markup:

Selling Price = $4.25 × (1 + 150 ÷ 100) = $4.25 × 2.5 = $10.63

Profit = $10.63 − $4.25 = $6.38

Margin = $6.38 ÷ $10.63 × 100 = 60%

Markup % from cost and selling price

A candle costs $6.00 to make and sells for $18.00:

Markup % = (($18.00 − $6.00) ÷ $6.00) × 100 = ($12.00 ÷ $6.00) × 100 = 200%

Margin = $12.00 ÷ $18.00 × 100 = 66.7%

Converting margin % to markup %

Markup % = Margin % ÷ (100 − Margin %) × 100

Example: 40% margin → Markup = 40 ÷ 60 × 100 = 66.67%

Converting markup % to margin %

Margin % = Markup % ÷ (100 + Markup %) × 100

Example: 66.67% markup → Margin = 66.67 ÷ 166.67 × 100 = 40%

Typical Markup Percentages by Product Type

These are the markup ranges you'll commonly see for handmade and small-batch maker products. Use them as a starting point, not a ceiling — your actual markup should come from your real costs, not from copying industry averages.

Product TypeTypical Retail MarkupEquivalent Margin
Handmade soap & bath products100–200%50–67%
Candles & wax melts150–300%60–75%
Handmade jewelry200–400%67–80%
Skincare & cosmetics150–300%60–75%
Baked goods & packaged food100–150%50–60%
Wholesale to retailers (all types)50–100%33–50%

Wholesale markup is lower because you're selling in volume to a buyer who will apply their own markup when selling to customers.

Common Markup Mistakes Makers Make

These are the ones we see most often.

Confusing markup and margin

If you've promised a wholesale buyer a "40% margin" but calculated it as a 40% markup, you've given them a 28.6% margin instead. They'll notice. Use Mode 3 of this calculator before every wholesale quote to make sure you're speaking the same language.

Applying markup to an incomplete cost

A 200% markup on materials alone is very different from a 200% markup on your full cost (materials + labor + overhead + packaging). Most makers who feel they're making healthy margins are only marking up their material cost, leaving labor and overhead uncovered.

Using the same markup across every product

A heavily labor-intensive product (hand-stamped jewelry, decorated sugar cookies, cold process soap with detailed swirl work) may need a 300% markup to be profitable. A simple product with low labor might work at 150%. Blanket markups hide underperforming products and leave money on the table on your best ones.

Setting markup based on what competitors charge, not what your costs are

If your cost is $12 and a competitor sells a similar product for $18, pricing at $18 gives you a 50% markup. That might be fine. Or their materials might be sourced differently, their labor might be priced differently, or they might be losing money on every sale. Price from your costs up, then check where the market sits.

When You Outgrow This Calculator

This calculator handles the math for a single product. Once you're managing multiple products with different ingredients, labor times, and costs — and those costs are changing as supplier prices fluctuate — doing this manually becomes a real time drain.

That's what Craftybase is built for. It tracks your ingredient purchases and automatically calculates the true cost per product from your recipes. When your coconut oil goes up in price, your soap cost updates automatically. You can see your markup and margin on every product, and know immediately which ones are profitable and which need repricing.

If you're selling wholesale, Craftybase also tracks your wholesale orders separately so your margins are clear across each channel. And because it connects to Etsy, Shopify, and other platforms, your COGS is always calculated from real order data.

Try Craftybase free for 14 days →

Who Should Use This Markup Calculator?

This calculator is useful for any maker who sells products and needs to understand the relationship between cost, selling price, markup, and margin. Specifically, it helps:

  • Soap and bath product makers setting retail prices for Etsy or Shopify, or working out what markup they need to make wholesale profitable at boutique prices.
  • Candle makers checking whether their current prices reflect their true costs after materials, fragrance, vessels, and labor are included.
  • Jewelry makers pricing made-to-order pieces where labor varies significantly across designs.
  • Bakers and food product makers working out how much margin to build in before approaching wholesale buyers like cafes or gift shops.
  • Cosmetics and skincare formulators pricing new products, especially when entering wholesale where buyers negotiate in margin terms.
  • Any maker receiving their first wholesale inquiry and needing to understand what margin a buyer is asking for and whether you can meet it profitably.

Frequently Asked Questions

What is markup?

Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of the cost. If a product costs $10 to make and you sell it for $15, your markup is 50% — you added 50% of the cost on top. The formula is: Markup% = ((Selling Price − Cost) ÷ Cost) × 100. Markup tells you how much more than cost you're charging, which is useful for setting prices. It's different from margin, which measures profit as a percentage of revenue instead.

What's the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. They use different denominators, so the same dollar profit produces different percentage numbers. A product that costs $10 and sells for $20 has a 100% markup and a 50% margin. This matters most when wholesale buyers quote in margin terms — if a buyer says they need 40% margin, you need to charge a 66.67% markup (not 40%) to deliver that. Always clarify which number a buyer is using before you quote.

What markup percentage should I use?

There's no universal answer — your markup needs to cover your full cost (materials, labor, overhead, packaging) and leave you with enough profit to sustain and grow your business. For retail sales, most handmade maker businesses target 100–300% markup depending on the product type. Candles and jewelry often carry higher markups than baked goods because margins need to accommodate higher labor time per unit. For wholesale, you're typically looking at 50–100% markup. The key is to start from your real cost, not from what competitors charge.

How do I calculate markup percentage?

To calculate markup percentage: subtract your cost from your selling price to get the profit, then divide that profit by your cost and multiply by 100. The formula is: Markup % = ((Selling Price − Cost) ÷ Cost) × 100. For example, if your cost is $8 and you sell for $20: ($20 − $8) ÷ $8 × 100 = 150% markup. You can use Mode 2 of this calculator to do this instantly — just enter your cost and selling price and it calculates your markup and margin automatically.

Is markup the same as profit margin?

No. Markup and profit margin both measure how much money you make relative to cost — but they divide by different numbers. Markup divides profit by cost. Margin divides profit by selling price. Because selling price is always higher than cost, margin is always a lower percentage than markup for the same transaction. A 100% markup gives you a 50% margin. A 50% markup gives you a 33% margin. These are not interchangeable — using the wrong one in a wholesale negotiation can mean significantly undercharging.

How do I convert a margin percentage to a markup percentage?

To convert margin % to markup %: divide the margin % by (100 minus the margin %) and multiply by 100. The formula is: Markup% = Margin% ÷ (100 − Margin%) × 100. For example, a 40% margin: 40 ÷ (100 − 40) × 100 = 40 ÷ 60 × 100 = 66.67% markup. Going the other way (markup to margin): Margin% = Markup% ÷ (100 + Markup%) × 100. The Mode 3 converter in this calculator does both conversions instantly.

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