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Markup calculator

Enter a cost and a markup percentage to get the selling price, or a cost and a price to get the markup, with the matching margin shown beside it.

What do you know?
Selling price
90.00
Profit per sale
30.00
Margin
33.33%

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Stays on your device

Everything runs in your browser. Nothing you type is sent anywhere unless you choose to email yourself the result.

Pricing something to sell?

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How to use it

  1. Choose “Cost and markup” to find a price, or “Cost and price” to find the markup.
  2. Enter the cost of the item.
  3. Enter the markup percentage, or the selling price.
  4. Read the price or the markup, the profit, and the margin that goes with it.

Markup is measured against cost

A 50% markup on a cost of 60 is a price of 90: you add half the cost on top. The margin on that same sale is 33.3%, because 30 of profit is a third of the 90 the customer paid. Suppliers and wholesalers usually quote markup; accountants and investors usually mean margin. Being handed one and reporting the other is the most common pricing error there is.

Picking a markup

There is no correct figure. A markup has to cover everything between the cost you typed and the money that reaches you — processing fees, returns, support, the sales that never happen — plus the profit you actually want. Work out the margin you need first, then read off the markup that produces it; that direction is the profit margin calculator.

Questions

How do I calculate markup?

Divide the profit by the cost. A cost of 60 sold at 90 is 30 of profit, and 30 ÷ 60 is a 50% markup.

How do I add a markup to a cost?

Multiply the cost by one plus the markup. A 40% markup on 25 is 25 × 1.4 = 35.

Is a 50% markup the same as a 50% margin?

No. A 50% markup on a cost of 60 gives a price of 90, which is a 33.3% margin. A 50% margin needs a price of 120, which is a 100% markup.

Can markup be more than 100%?

Yes. Markup is measured against cost and has no ceiling: an item that costs 5 and sells for 20 has a 300% markup and a 75% margin.

What is keystone pricing?

Doubling the wholesale cost to set the retail price. That is a 100% markup, which is a 50% margin. It is a convention in some retail, not a rule.