Markup Pricing Calculator

Markup-based pricing

Markup pricing ties the selling price back to the cost: price = cost · (1 + markup), which you can also write as price = cost · multiplier. Example: take a product that costs R$ 50 and apply a multiplier of 2.5, and it sells for R$ 125. That's a 150% markup, which works out to a 60% gross margin. In Brazilian retail you'll see typical multipliers of fashion 2.5–3×, groceries 1.3–1.5×, and electronics 1.2–1.4×. Whatever number you land on has to cover sales taxes (ICMS + PIS + COFINS, roughly 25–30%), operating expenses, payment fees (credit card around 3–5%), and the profit you actually want to keep. Price off the bare product cost and skip those layers, and you're selling at a loss.

Applications and context

This is the workhorse method for retail pricing. It shows up in restaurants, where menu engineering usually runs at 3× food cost, in e-commerce tools like Shopify, Bling, Tiny and Nuvemshop, in industrial cost-plus contracts, and in import resale, where landed cost stands in for the simple cost. Markup is quick to apply on a per-SKU basis, and it lines up with the way suppliers quote you in the first place.

FAQ

Markup multiplier or markup percentage? Same thing, two ways of saying it. A multiplier of 2.5 is a 150% markup. On the shop floor people reach for multipliers; in finance reports the percentages take over.

How do I include taxes in the markup? Stack ICMS, PIS, COFINS (or Simples) onto the cost before you apply the margin you want. Or work it the other way, with a divisor: price = cost / (1 − tax% − margin%).

Should I use the same markup for every product? Usually no. Fast-moving items can carry a thinner markup, while exclusive or seasonal SKUs earn a fatter one.