Markup Calculator
Find a selling price from cost and markup, or measure the markup, margin and gross profit of a price you already charge.
Know your cost and the markup you want? Get the selling price.
- Profit per unit
- $18.00
- Gross margin
- 37.5%
What is markup?
Markup is the amount added to a product’s cost to set its selling price, expressed as a percentage of cost. A $30 item sold for $48 has a 60% markup. Markup is always larger than the margin on the same sale because it divides profit by cost instead of by price.
Use the Price from markup tab when you know your cost and want a selling price. Use Markup from price when you already charge a price and want to know what markup, margin and gross profit it produces.
Price = Cost × (1 + Markup ÷ 100)(Price − Cost) ÷ Cost × 100(Price − Cost) ÷ Price × 100Example: a boutique pricing a jacket
The jacket costs $30 wholesale and the store uses a 60% markup.
- Selling price: $30 × 1.60 = $48
- Profit per jacket: $48 − $30 = $18
- Margin: $18 ÷ $48 = 37.5%
Many retailers start from keystone pricing, a 100% markup that doubles the wholesale cost. On the same jacket that means a $60 price and a 50% margin.
Markup to margin conversion
| Markup | Equivalent margin | Price for a $10 cost |
|---|---|---|
| 25% | 20% | $12.50 |
| 33.3% | 25% | $13.33 |
| 50% | 33.3% | $15.00 |
| 75% | 42.9% | $17.50 |
| 100% | 50% | $20.00 |
| 150% | 60% | $25.00 |
| 200% | 66.7% | $30.00 |
Common mistakes
- Treating markup as margin. A 50% markup only leaves a 33.3% margin. If your plan needs a 50% margin, you need a 100% markup.
- Marking up an incomplete cost. Add inbound shipping, packaging and payment fees to the unit cost before applying your markup.
- Using one markup for everything. Slow-moving or frequently returned items usually need a higher markup than fast sellers.
Markup FAQ
How do I calculate markup percentage?
Subtract cost from the selling price, divide by the cost and multiply by 100. An item that costs $30 and sells for $50 has a ($50 − $30) ÷ $30 × 100 = 66.7% markup.
Can markup be more than 100%?
Yes. Any price more than double the cost produces a markup above 100%. Margin, by contrast, can never reach 100% unless the cost is zero.
What markup do I need for a 50% margin?
A 100% markup. In general, markup = margin ÷ (1 − margin). For a 40% margin that is 0.40 ÷ 0.60 = 66.7%.
What is keystone pricing?
A retail convention of doubling the wholesale cost: a 100% markup and a 50% margin. It is a starting point, not a rule; competition and demand still set the final price.
Guides for this calculation
Build context around the numbers with worked examples from our guides.
Food Margin vs. Markup: Which Percentage Sets the Price? →