Markup Calculator
Set prices from cost and markup — and never confuse markup with margin again
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Quick summary
Markup is profit as a percentage of cost: a $50 item marked up 100% sells for $100. The equivalent margin is always smaller — that 100% markup is a 50% margin, because margin divides by price instead of cost. The built-in reference table converts between them: margin = markup ÷ (100 + markup).
Reviewed by Simple Calculators TeamLast reviewed
How to use this calculator
- Enter the inputs requested by the calculator.
- Choose the units or options that match your situation and review the assumptions.
- Run or update the calculation to see the result.
- Review the result, breakdown, and formulas shown on the page.
- Check the inputs, units, dates, and limitations before saving or sharing the result.
Frequently asked questions
How do I calculate markup?
(Price − Cost) ÷ Cost × 100. Buy at $50, sell at $80: markup is 60%. Going the other way, price = cost × (1 + markup): a 60% markup on $50 gives $80.
What's keystone pricing?
Doubling the wholesale cost — a 100% markup, or 50% margin — the traditional retail default. Modern retail varies widely around it: groceries far below, jewelry and eyewear often 200–300% markups.
Why does a 50% markup only give a 33% margin?
Because the denominators differ: $50 cost + 50% markup = $75 price, and the $25 profit is 33.3% of the $75 price. As markup grows the gap widens — a 300% markup is only a 75% margin.
What markup should I use?
Work backwards from the margin your business needs to cover overhead and profit, then convert: needing a 40% margin means a 66.7% markup, not 40%. Then sanity-check the resulting price against your market.
Key terms
- Cost-Plus Pricing
- Setting price as cost plus a fixed markup — simple, but ignores what customers would pay.
- Keystone
- The classic 100% retail markup (= 50% margin).
- Markup-to-Margin
- margin = markup ÷ (100 + markup) — the conversion the reference table applies.
Methodology, sources & limitations
This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.
For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.