Markup Calculator

Set a markup on your cost to get the selling price — and see the margin that price really gives you.

Quick answer

A markup calculator turns a cost and markup percentage into a selling price, profit and margin. A 50% markup on a $100 cost gives a $150 price, $50 profit and a 33.3% margin. Margin is always lower than markup because it is measured against the higher selling price.

$
%
Selling price
$60.00
Profit per unit
$20.00
Gross margin
33.33%
A 50% markup on a $40.00 cost gives a selling price of $60.00 and $20.00 profit per unit. Your margin is 33.3% — always lower than the markup, because margin is measured against the higher selling price.

Key takeaways

  • Price = cost × (1 + markup).
  • Margin = markup ÷ (1 + markup).
  • 100% markup (keystone) equals a 50% margin.
Markup — The amount added to cost to set a selling price, expressed as a percentage of cost.

How the markup calculator works

Markup is added on top of cost. Because margin is measured against the higher selling price, it is always smaller than the markup.

Formula

Price = cost × (1 + markup) Margin = markup ÷ (1 + markup)

Standard formula. Further reading: Investopedia – Markup · Investopedia – Profit margin

Worked example

Cost $100 with 50% markup: price = 100 × 1.5 = $150, profit $50, margin 33.3%.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). 100% markup = 50% margin.

How do I convert margin to markup?

Markup = margin ÷ (1 − margin). 40% margin = 66.7% markup.

What is keystone pricing?

Retail pricing at 100% markup — doubling the wholesale cost.

Should markup include overheads?

Your markup must cover overheads and profit, so set it high enough after checking your break-even point.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated