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Markup Calculator

Set a selling price from cost and markup, and see the equivalent profit margin.

About the Markup Calculator

Enter your cost and the markup percentage you want to add. The calculator gives the selling price, the profit per unit and the profit margin that markup produces.

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same profit gives a bigger markup number than margin: doubling the cost (100% markup) is a 50% margin.

The formula

Price = cost × (1 + markup); margin = markup ÷ (1 + markup)

Worked example

Cost 40 with a 50% markup

  1. Price = 40 × 1.5 = 60.00
  2. Profit: 20 per unit
  3. Margin = 20 ÷ 60 = 33.33%

Questions people ask

How do I convert margin to markup?

Markup = margin ÷ (1 − margin).

Which should I use for pricing?

Either, but don't confuse them; a 30% margin needs a 42.9% markup.

What is keystone pricing?

A 100% markup: doubling the wholesale cost, common in retail. It gives a 50% margin.