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Markup calculator

Enter your cost and markup percentage to get the selling price, or enter a cost and a price to see the markup. Every answer shows the matching margin, so you can quote either one with confidence.

What do you know?

What you pay for the item, or what it costs to make.

Profit as a share of the cost. 100% doubles the cost.

Common markups

Selling price at a 50% markup
$60.00
Profit $20.00 per item · margin 33.33%
Cost
$40.00
Markup (profit ÷ cost)
50%
Selling price
$60.00
Profit per item
$20.00
Margin (profit ÷ price)
33.33%
Meant a 50% margin? On a $40.00 cost that needs a price of $80.00, which is a 100% markup.

Markup to margin for a $40.00 cost

25% markup (20% margin)
$50.00
50% markup (33.33% margin)
$60.00
75% markup (42.86% margin)
$70.00
100% markup (50% margin)
$80.00
150% markup (60% margin)
$100.00
200% markup (66.67% margin)
$120.00
  • Nothing is uploaded
  • Free, no sign-up
  • Works on phone and desktop

How to calculate markup

  1. 1

    Choose what you know: cost and markup to get a price, cost and price to find the markup, or price and markup to work back to the cost.

  2. 2

    Enter the cost of one item: the supplier price plus any freight, duty or packaging you pay to get it on the shelf.

  3. 3

    Type the markup percentage, or the selling price before sales tax or VAT.

  4. 4

    Read the answer with its margin and profit, then compare other markups in the ladder underneath.

Features

  • Price from any markup

    Add 30%, 100% or any markup to a cost and get the selling price at once.

  • Margin alongside

    Every answer shows the matching margin, so a 50% markup is never mistaken for a 50% margin.

  • Work back to the cost

    Know the shelf price and the usual markup? See what the item cost, or the most a supplier can charge.

  • Markup ladder

    Prices at 25% to 200% markup for your cost, each with its margin, in dollars, pounds, euros and more.

The markup formulas

  • Profit = selling price − cost
  • Markup = profit ÷ cost × 100
  • Selling price = cost × (1 + markup ÷ 100)
  • Cost from a price = selling price ÷ (1 + markup ÷ 100)
  • Margin from a markup = markup ÷ (100 + markup) × 100

Markup is the way most shops, makers and trades set prices, because it starts from a number you already know: what the item cost you. Margin starts from the selling price, which is why the two percentages differ even though the profit in dollars is the same.

Worked examples

  • A handmade candle: materials and labor come to $8.50. With a 120% markup the price is $18.70, a profit of $10.20 and a margin of 54.55%. Round it up to $18.99 and the markup becomes 123.41%.
  • Keystone retail: a sweater bought wholesale for $22.50 and doubled sells for $45. That's a 100% markup and a 50% margin.
  • Materials on a job: a contractor buys $1,250 of materials and marks them up 15%. The customer pays $1,437.50, the contractor keeps $187.50, and the margin on those materials is 13.04%.
  • Working backward: a store sells an item at $129 and uses a 60% markup. The item cost about $80.63: $129 ÷ 1.6. Choose Price and markup above to do this for any price.

Markup to margin

MarkupSame as a margin of
10%9.09%
20%16.67%
25%20%
30%23.08%
40%28.57%
50%33.33%
60%37.5%
75%42.86%
100%50%
150%60%
200%66.67%
300%75%

However high the markup goes, the margin never reaches 100%: a 300% markup is a 75% margin.

Choosing a markup that covers your overheads

A markup has to pay for more than the item. Rent, wages, card fees, software, marketing and returns all come out of the gap between cost and price. A useful check is to turn your overheads into a share of sales. If they come to 25% of revenue, every product needs a margin above 25% just to break even, and that means a markup above 33.33%. Anything less loses money once the overheads are paid, however busy you are.

Watch out for discounts, too. A sale comes off the selling price, not the cost, so it eats into markup faster than people expect. A 50% markup with 20% off at the register leaves a 20% markup. Run sale prices through the discount calculator, see how many sales cover your fixed costs with the break-even calculator, and check the same numbers as margins in the margin calculator. If you charge VAT, set the price before VAT here, then add it with the VAT calculator.

Frequently asked questions

How do I calculate markup?

Subtract the cost from the selling price to get the profit, divide the profit by the cost and multiply by 100. An item that costs $40 and sells for $60 makes $20 profit: $20 ÷ $40 = 0.5, a 50% markup.

How do I add a markup to a price?

Multiply the cost by 1 plus the markup as a decimal. For a 50% markup on a $40 cost: $40 × 1.5 = $60. For 30%, multiply by 1.3; for 100%, multiply by 2.

Is markup the same as margin?

No. Both use the same profit, but markup divides it by the cost and margin divides it by the selling price. The $40 item selling for $60 has a 50% markup but a 33.33% margin. Markup is always the bigger number for a profitable item.

What markup do I need for a 50% margin?

A 100% markup: double the cost. In general, markup = margin ÷ (100 − margin) × 100, so a 40% margin needs a 66.67% markup and a 60% margin needs a 150% markup.

What is keystone pricing?

Keystone means selling at double the wholesale cost, a 100% markup and a 50% margin. It is a long-standing rule of thumb in retail, though many shops now price above or below it depending on the product and competition.

Should shipping be included in the cost?

Yes, if you pay it. Use the landed cost per unit: the purchase price plus inbound freight, duties and any packaging you add. Leaving them out makes your markup look higher than the profit you really keep.

What is a normal markup?

There is no single standard. Markups vary widely by industry, product and sales channel, from thin markups on groceries and electronics to much larger ones on jewelry or restaurant drinks. Start from your costs and overheads, then check what similar sellers charge.

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