Markup Calculator – Price, Cost & Margin %

Markup is the percentage added to the cost price to determine the selling price. It's calculated based on cost, not selling price. This differs from profit margin, which is calculated based on revenue. Worked example: a $40 product marked up 50% sells for $40 × 1.50 = $60. That $20 gross profit is a 33.3% margin (20 ÷ 60), not 50% — margin divides by price, markup by cost. A 100% markup equals only a 50% margin.

1. 1

   Step 1

   Enter your product cost (what you paid or spent to produce it)

2. 2

   Step 2

   Input your desired markup percentage

3. 3

   Step 3

   Calculator adds the markup to your cost

4. 4

   Step 4

   View the selling price and profit amount

5. 5

   Step 5

   See the equivalent profit margin percentage

• 1

  Standard retail markup is typically 50-100% (keystone pricing is 100% or 2x cost)

• 2

  Convert markup to margin for financial reporting: Margin = Markup / (1 + Markup)

• 3

  Higher markups are justified by value-added services, exclusivity, or convenience

• 4

  Consider price elasticity - some products tolerate higher markups than others

• 5

  Review markup regularly as supplier costs and market conditions change

• Confusing Markup with Margin

• Forgetting All Costs

• Using Same Markup for All Products

• Not Accounting for Discounts