Markup Calculator
Work out a selling price from your cost and markup, find the markup and margin from a cost and price, or set a target margin and get the price you need. Markup and margin are shown side by side so you never mix them up.
What the item costs you (purchase or production cost).
Profit as a percent of cost.
Profit as a percent of the selling price (below 100%).
How to use the Markup Calculator
- Pick what you know: cost and markup, cost and selling price, or cost and the margin you want.
- Enter your cost per unit, including purchase price and any landed or production costs.
- Enter the markup %, price or target margin depending on the mode.
- Read the selling price, markup, margin and profit. Add units sold to see total profit.
- Check the table to compare common markups and their margins for the same cost.
Markup and margin formulas
- Profit = selling price − cost
- Markup % = profit ÷ cost × 100
- Margin % = profit ÷ selling price × 100
- Price from markup = cost × (1 + markup ÷ 100)
- Price from margin = cost ÷ (1 − margin ÷ 100)
Example: cost $40, markup 50%. Price = 40 × 1.5 = $60, profit = $20, margin = 20 ÷ 60 = 33.33%. If you instead want a 50% margin on the same item, the price must be 40 ÷ 0.5 = $80, which is a 100% markup.
Markup to margin conversion table
| Markup | Margin | Price multiplier | Price for a $10 cost |
|---|---|---|---|
| 10% | 9.09% | × 1.1 | $11.00 |
| 20% | 16.67% | × 1.2 | $12.00 |
| 25% | 20.00% | × 1.25 | $12.50 |
| 30% | 23.08% | × 1.3 | $13.00 |
| 33.33% | 25.00% | × 1.333 | $13.33 |
| 40% | 28.57% | × 1.4 | $14.00 |
| 50% | 33.33% | × 1.5 | $15.00 |
| 60% | 37.50% | × 1.6 | $16.00 |
| 75% | 42.86% | × 1.75 | $17.50 |
| 100% | 50.00% | × 2 | $20.00 |
| 150% | 60.00% | × 2.5 | $25.00 |
| 200% | 66.67% | × 3 | $30.00 |
| 300% | 75.00% | × 4 | $40.00 |
A common pricing mistake is applying a target margin as a markup: adding 30% to cost gives only a 23.08% margin. Use the "Cost + margin %" mode when your goal is a margin.
Frequently asked questions
How do I calculate markup?
Markup % = (selling price − cost) ÷ cost × 100. If an item costs $40 and sells for $60, the markup is (60 − 40) ÷ 40 = 50%.
How do I find the selling price from a markup?
Selling price = cost × (1 + markup ÷ 100). A $40 item with a 50% markup sells for 40 × 1.5 = $60.
What is the difference between markup and margin?
Both use the same profit, but markup divides it by the cost while margin divides it by the selling price. A $40 item sold for $60 has a $20 profit: a 50% markup but only a 33.33% margin. Margin is always smaller than markup for a profitable sale.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin), using decimals. A 25% margin is 0.25 ÷ 0.75 = 33.33% markup. Going the other way, margin = markup ÷ (1 + markup), so a 100% markup equals a 50% margin.
What is keystone pricing?
Keystone pricing is a common retail rule of doubling the wholesale cost, which is a 100% markup and a 50% gross margin.
Can margin be 100% or more?
No. Margin is profit as a share of the price, so it can only reach 100% if the cost is zero. Markup has no upper limit: a 300% markup is perfectly possible.