Markup Chain Calculator
Apply a chain of successive percentage markups to a starting cost and see the compounded final price and total markup.
How it works
Final = base × (1 + m1) × (1 + m2) × (1 + m3) · total markup = (final ÷ base − 1) × 100
When a product passes through several hands — manufacturer to distributor to retailer — each stage adds its markup to the price it paid, not to the original cost. That makes the markups compound: a 25% then 20% then 10% chain does not total 55%, because each rate applies to a larger amount than the last. The gap between the compounded markup and the naive sum grows as the individual markups get bigger.
Worked example
Starting at $100: after +25% it is $125, after +20% it is $150, after +10% it is $165. That is a 65% total markup — noticeably more than the 55% you would get by adding 25 + 20 + 10.
Frequently asked questions
Why don’t the markups just add up?
Each markup is applied to the previous price, which already includes the earlier markups. So the second and third rates work on a bigger base — the effect compounds, like interest. 25% + 20% + 10% compounds to 65%, not 55%.
Can I use fewer than three stages?
Yes — set any markup you don’t need to 0%. A 0% stage multiplies by 1 and leaves the price unchanged, so a two-stage chain is just the third field left at zero.
Is markup the same as margin here?
No. These are markups — percentages added on top of cost. Margin measures profit as a share of the selling price and would give different numbers; use a margin calculator if that is what you need.
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This calculator is for educational purposes. Double-check important results before acting on them.