Markup Calculator

Find the selling price from cost and markup percentage, plus the profit and resulting margin.

$
%
Selling price
$70.00
Selling price
Cost: $50.00 (71.4%)Markup (profit): $20.00 (28.6%)$70.00price
  • Cost$50.0071.4%
  • Markup (profit)$20.0028.6%
Profit
$20.00
Profit margin
28.57%
Show the working
  1. Profit = $50.00 × 40% = $20.00
  2. Price = $50.00 + $20.00 = $70.00
  3. Margin = $20.00 ÷ $70.00 = 28.57%

Runs entirely in your browser. Nothing you enter is uploaded.

Formula

Price = cost × (1 + markup)Profit = cost × markupMargin = markup ÷ (1 + markup)

How it works

Markup is the amount added on top of cost to set a selling price, expressed as a percentage of the cost. It is the natural way to price when you know what something costs you: a $50 item with a 40% markup sells for $70.

Markup always overstates your margin. The same $20 profit is 40% of the $50 cost but only 28.6% of the $70 price. Retailers often quote "keystone" pricing — a 100% markup, doubling the cost — which works out to a 50% margin.

When setting prices, make sure the markup covers not just the item cost but its share of overhead such as rent, wages, shipping and payment fees. Use the break-even calculator to check how many sales you need at a given price.

Frequently asked questions

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 25% markup gives 0.25 ÷ 1.25 = 20% margin. To go the other way, markup = margin ÷ (1 − margin).

What markup do I need for a 50% margin?

A 100% markup — selling at double the cost.

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