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Apply a markup to your cost to get a selling price — and see the margin that markup actually produces, which is always the smaller number.
Also known as: Cost Plus Calculator · Selling Price Calculator · Retail Markup Calculator · Price Markup Tool
Markup is what you add to cost, as a share of cost. The margin it produces is always smaller.
What it costs you.
No upper limit.
Selling price
$90.00
Profit per unit
$30.00
Margin
33.33%
share of price
Markup
50%
share of cost
A 50% markup is a 33.33% margin. If you applied 33.33% as a markup instead, you would sell at $80.00 and earn $10.00 less per unit.
The two numbers people substitute for each other. They only agree at zero.
| Markup | Margin | Multiplier | $60 cost sells at |
|---|---|---|---|
| 10% | 9.09% | 1.1x | $66.00 |
| 15% | 13.04% | 1.15x | $69.00 |
| 20% | 16.67% | 1.2x | $72.00 |
| 25% | 20% | 1.25x | $75.00 |
| 30% | 23.08% | 1.3x | $78.00 |
| 40% | 28.57% | 1.4x | $84.00 |
| 50% | 33.33% | 1.5x | $90.00 |
| 60% | 37.5% | 1.6x | $96.00 |
| 75% | 42.86% | 1.75x | $105.00 |
| 100% | 50% | 2x | $120.00 |
| 150% | 60% | 2.5x | $150.00 |
| 200% | 66.67% | 3x | $180.00 |
| 300% | 75% | 4x | $240.00 |
Reading it the other way: to earn a 50% margin you need a 100% markup, and a 75% margin needs 300%. The formula is markup = margin ÷ (1 − margin). A 40% margin target needs a 66.67% markup.
Markup is the amount you add to cost, expressed as a share of that cost. It is how buying decisions are usually framed — you know what you paid, and you want to know what to charge. Cost $60, apply 50% markup, sell at $90.
The trap is assuming that a 50% markup gives you a 50% margin. It gives you 33.3%. Of that $90 sale, $30 is profit, and $30 is a third of $90. Every markup converts to a smaller margin, and the gap widens as the numbers grow: a 100% markup is a 50% margin, a 300% markup is a 75% margin.
This matters most in retail, where keystone pricing — doubling cost, a 100% markup — is the traditional default. That sounds generous until you note it is a 50% gross margin before rent, staff, shrinkage and returns. Categories with high return rates often need a 2.5x or 3x multiplier to clear the same real profit.
If you have a margin target rather than a markup habit, invert it: the markup you need is margin ÷ (1 − margin). A 40% margin target needs a 66.7% markup. The conversion table on this page covers the common values so you can read it off directly.
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Markup = (price − cost) ÷ cost × 100. To go the other way, price = cost × (1 + markup ÷ 100). A $60 cost with a 50% markup sells for $90.
No. A 50% markup produces a 33.3% margin. To actually earn a 50% margin you need a 100% markup. Confusing the two systematically underprices your product.
Doubling the wholesale cost — a 100% markup, which is a 50% gross margin. It is the traditional retail default, but it is a starting point rather than a rule, and thin-margin or high-return categories often need more.
Markup = margin ÷ (1 − margin). For a 40% margin, that is 0.40 ÷ 0.60 = 66.7% markup. The conversion table on this page lists the common pairs.
Yes, and routinely is. Markup has no upper bound because it is measured against cost. Margin cannot reach 100% because that would require a zero cost. A 400% markup is an 80% margin.
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