Markup Calculator
Calculate selling price from cost, convert between markup and margin, and compare pricing tiers
Calculator Settings
Calculation Results
Please fill in all required fields to see calculation results
Complete Guide to Markup Calculations
What Is Markup?
Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of cost. It is the primary pricing mechanism for retailers, wholesalers, and manufacturers setting product prices.
Understanding markup is essential for maintaining healthy profit margins. While markup and margin are related, they are calculated from different bases and confusing them is a common pricing mistake. For a full breakdown of gross, operating, and net margins, see the Profit Margin Calculator.
Markup Formulas
Core Markup Formulas:
Markup% = (Selling Price - Cost) / Cost x 100
Selling Price = Cost x (1 + Markup% / 100)
Cost = Selling Price / (1 + Markup% / 100)
Margin% = Markup% / (100 + Markup%)
Markup% = Margin% / (100 - Margin%)
Where: Cost = purchase or production cost; Markup% = percentage added to cost; Margin% = profit as percentage of selling price
When evaluating whether a deal is worth pursuing, combine markup analysis with a Break-Even Calculator to determine how many units you need to sell to cover fixed costs at a given markup level.
Benefits of Using a Markup Calculator
Instant Pricing
Enter your cost and desired markup to see the exact selling price, profit per unit, and equivalent margin in seconds.
Markup-Margin Converter
Switch between markup and margin modes to convert between the two without manual formula work. Eliminate the most common pricing confusion.
Tier Comparison Table
See 9 common markup rates (10% to 200%) applied to your cost side by side, each showing the resulting margin, price, and profit.
Multi-Unit Scaling
Enter a quantity to see total revenue, total cost, and total profit for batch orders or wholesale pricing scenarios.
Pricing Tips
Always know both numbers: Quote markup internally (it's intuitive for purchasing teams) but track margin for profitability analysis. A 100% markup sounds aggressive but is only a 50% margin. Use the ROI Calculator to see how markup translates to return on investment over time.
Factor in all costs: Markup should cover more than just COGS. Include shipping, packaging, storage, returns, and payment processing fees in your cost base before applying markup, or you will under-price.
Use keystone as a baseline: Keystone pricing (100% markup / 50% margin) is the standard starting point in retail. Adjust up for slow-moving or niche items, and down for high-volume commodity products. Check the Discount Calculator to see how promotions erode your margin from this base.
Common Mistakes
Using Markup% as Margin%
A 40% markup is NOT a 40% margin. A $100 cost with 40% markup = $140 price, but the margin is only 28.6% ($40 / $140). On $1M revenue, that mistake means $114K less profit than expected. Always convert using Margin = Markup / (100 + Markup).
Ignoring Hidden Costs in Cost Base
Applying a 50% markup to raw material cost alone ignores shipping, labor, packaging, and overhead. If those add 30% to true cost, your effective markup drops to only 15% and your margin shrinks from 33% to 13%.
Applying One Markup Across All Products
Different products have different price elasticities. A 200% markup works for specialty items but will kill sales on commodity goods where competitors price aggressively. Segment your catalog and set markup tiers by category.
Related tools
Browse allProfit Margin Calculator
Calculate gross, operating, and net profit margins plus markup percentage from revenue and costs. Includes a full P&L breakdown with COGS, OpEx, other expenses, and taxes.
OpenBreak-Even Calculator
Calculate your break-even point in units and revenue. Enter fixed costs, price, and variable cost to see contribution margin, margin of safety, and projected profit.
OpenDiscount Calculator
Calculate the price after discount, total savings, and final cost with tax. Compare 5%-50% discount rates side by side.
OpenROI Calculator
Calculate return on investment, net profit, annualized ROI, and investment multiple for any asset. Include additional costs, income, and holding period.
OpenFrequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to cost to get the selling price: Markup% = (Price - Cost) / Cost x 100. Margin is the percentage of the selling price that is profit: Margin% = (Price - Cost) / Price x 100. A 50% markup on a $100 cost = $150 price, but the margin is only 33.3%. They are never equal unless both are zero.
How do I convert margin to markup?
Use the formula: Markup% = Margin% / (100 - Margin%). For example, a 40% margin = 40 / (100 - 40) = 40 / 60 = 66.67% markup. Conversely, Margin% = Markup% / (100 + Markup%). A 100% markup = 100 / 200 = 50% margin.
What is a typical markup percentage by industry?
Retail clothing: 100-300% (keystone = 100%). Grocery: 5-25%. Restaurants: 200-400% on food. Electronics: 10-30%. Jewelry: 50-300%. SaaS/software: 300-1000%+. Higher markups compensate for slower inventory turnover, spoilage, or high operating costs.
Why does confusing markup and margin cause pricing errors?
If your target margin is 40% and you mistakenly apply a 40% markup, your actual margin is only 28.6% (40/140). On $100K in revenue, that's $11,400 less profit than expected. The higher the target, the bigger the gap: a 50% markup yields only 33.3% margin, not 50%.
How do I calculate the selling price from cost and markup?
Selling Price = Cost x (1 + Markup% / 100). For a $80 cost with 25% markup: $80 x 1.25 = $100 selling price. To reverse it: Cost = Selling Price / (1 + Markup% / 100), so $100 / 1.25 = $80.
How does this calculator compare to the Profit Margin Calculator?
This Markup Calculator works from cost upward — enter cost + markup% to find the selling price. The Profit Margin Calculator works from revenue downward — enter revenue, COGS, and expenses to find gross, operating, and net margins. Use this tool for pricing individual products; use Profit Margin for analyzing overall business profitability.