Markup Calculator
Enter any two of cost, selling price and markup percentage to get the third, plus your margin
Updated 2026-11-04
- Selling price
- $60.00
- Profit per unit
- $20.00
- Gross margin
- 33.3%
- Price ÷ cost
- 1.50×
- Markup used
- 50.0%
Markup = profit ÷ cost. Margin = profit ÷ price, so margin is always the smaller number: a 50% markup is a 33.3% margin.
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| Markup | Price on this cost | Margin |
|---|---|---|
| 10% | $44.00 | 9.1% |
| 20% | $48.00 | 16.7% |
| 25% | $50.00 | 20.0% |
| 30% | $52.00 | 23.1% |
| 40% | $56.00 | 28.6% |
| 50% | $60.00 | 33.3% |
| 75% | $70.00 | 42.9% |
| 100% | $80.00 | 50.0% |
| 150% | $100.00 | 60.0% |
| 200% | $120.00 | 66.7% |
Markup is how much you add on top of what something costs you, as a percentage of that cost. A product that costs $40 and sells for $60 has a $20 markup, and $20 ÷ $40 = 50%. Pick what you know: cost and markup gives the selling price, cost and price gives the markup percentage, and price and markup works back to the cost. Every answer also shows the margin, because a 50% markup is only a 33.3% margin. Nothing is stored or sent.
The markup formula
Markup % = (selling price − cost) ÷ cost × 100. To price from a markup, selling price = cost × (1 + markup ÷ 100). To find the cost from a price, cost = price ÷ (1 + markup ÷ 100).
Worked example: a $12.50 item with a 35% markup sells for 12.50 × 1.35 = $16.88 (rounded to the cent). The profit is $4.38, and the margin is 4.38 ÷ 16.88 = 25.9%.
Worked example going the other way: you pay $8 for a mug and sell it for $20. The markup is (20 − 8) ÷ 8 = 150%, the price is 2.5 times cost, and the margin is 12 ÷ 20 = 60%.
Markup vs margin
Both use the same profit, but markup divides it by the cost and margin divides it by the price. Because the price is always bigger than the cost, margin is always the smaller number. Mixing them up is the most common pricing mistake: if you want a 40% margin and add a 40% markup, you get a 28.6% margin instead.
Convert with margin = markup ÷ (100 + markup) and markup = margin ÷ (100 − margin), both in percent. To price straight from a target margin, use the markup vs margin converter linked below.
| Markup | Price multiplier | Margin |
|---|---|---|
| 10% | 1.10 × cost | 9.1% |
| 20% | 1.20 × cost | 16.7% |
| 25% | 1.25 × cost | 20.0% |
| 30% | 1.30 × cost | 23.1% |
| 40% | 1.40 × cost | 28.6% |
| 50% | 1.50 × cost | 33.3% |
| 60% | 1.60 × cost | 37.5% |
| 75% | 1.75 × cost | 42.9% |
| 100% (keystone) | 2.00 × cost | 50.0% |
| 150% | 2.50 × cost | 60.0% |
| 200% | 3.00 × cost | 66.7% |
| 300% | 4.00 × cost | 75.0% |
What to include in cost
Markup only protects your profit if the cost you start from is the full landed cost of the item, not just the supplier invoice.
- Inbound freight, duties and customs brokerage, divided across the units in the shipment.
- Packaging, labels and inserts that go out with every order.
- Card processing fees and marketplace fees, if you sell through a channel that takes a cut of each sale.
- Expected shrinkage, damage and returns for the product line.
- For service work, the labor cost per hour including payroll taxes, not just the wage.
Choosing a markup
There is no single right markup. It has to cover your overheads (rent, software, wages that are not tied to one job) and leave a profit after them. Work out what share of revenue your overheads take, add the net profit you want, and that is the minimum margin you need; convert it to a markup with the table above. A shop whose overheads are 30% of sales and who wants 10% net profit needs a 40% margin, which is a 66.7% markup.
Frequently asked questions
How do you calculate markup percentage?
Subtract the cost from the selling price, divide by the cost and multiply by 100. A $40 item selling for $65 has a markup of 25 ÷ 40 = 62.5%.
How do I add a markup to a price?
Multiply the cost by 1 plus the markup as a decimal. A 50% markup on a $40 cost is 40 × 1.5 = $60.
Is a 50% markup the same as a 50% margin?
No. A 50% markup turns a $40 cost into a $60 price, which is a 33.3% margin. A 50% margin needs a 100% markup (double the cost).
What is keystone markup?
Keystone means doubling the cost: a 100% markup, which equals a 50% margin. It is a long-standing retail rule of thumb, not a requirement.
How do I find the cost from the selling price and markup?
Divide the price by 1 plus the markup. A $60 price with a 50% markup means the cost was 60 ÷ 1.5 = $40.
Can markup be more than 100%?
Yes. Markup has no upper limit: selling a $8 item for $20 is a 150% markup. Margin, by contrast, can never reach 100%.
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