Markup Calculator
Turn a product cost and a markup percentage into a selling price, and see the margin that price gives you.
How markup works
Markup is the amount you add to a product's cost to set its price, written as a percentage of the cost. It's the quickest way to price a catalog consistently, but the margin it gives you is always lower than the markup percentage.
Profit = Price − Cost
Margin = Profit ÷ Price × 100
Worked example
A product costs $20. With a 100% markup the price is 20 × 2 = $40, the profit is $20 and the margin is 20 ÷ 40 = 50%.
Markup to margin
| Markup | Gross margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.7% |
| 300% | 75% |
Markup calculator FAQ
How do I calculate a selling price from a markup?
Multiply the cost by 1 plus the markup as a decimal. A $20 product with a 60% markup sells for 20 × 1.6 = $32.
What is the difference between markup and margin?
Markup is profit as a share of the cost; margin is profit as a share of the selling price. The same $12 profit on a $32 price is a 60% markup but a 37.5% margin.
What markup should I use?
Start from the margin you need to cover advertising, shipping, fees and overheads, then work out the markup that gives it. The table on this page converts common markups to margins, and the Profit Margin Calculator finds the price for any target margin.
What is keystone pricing?
Keystone pricing means setting the price at double the cost, which is a 100% markup and a 50% margin.