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Markup Calculator

Set prices from cost and markup — and never confuse markup with margin again

Markup

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

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. 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 If you spot an outdated figure or formula, please contact us with a correction.