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Markup calculator

Markup Calculator

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 to selling price

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.

Markup to margin, side by side

The two numbers people substitute for each other. They only agree at zero.

MarkupMarginMultiplier$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.

What a markup actually earns you

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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Frequently asked questions

What is the markup formula?+

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.

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

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.

What is keystone pricing?+

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.

How do I convert a margin target into a markup?+

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.

Can markup be more than 100%?+

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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