Markup is how much you add to a product's cost to set its selling price, shown as a percentage of cost. Use the free markup calculator below to find your selling price from a markup or a target profit margin, or to check the markup and margin on a price you already charge.
Markup Calculator
Choose what you know in the first box: a markup %, a target profit margin %, or a selling price. The calculator returns the selling price, profit per unit, markup and margin.
Markup Formula
Markup % = (Selling price − Cost) ÷ Cost × 100
To set a price from a markup you already have in mind, rearrange it:
Selling price = Cost × (1 + Markup %)
Example: a product costs $40 to buy and land in your warehouse. You add a 50% markup: $40 × 1.50 = $60. Your profit is $20 per unit.
Markup vs Margin: What's the Difference?
Markup and margin describe the same profit from two different starting points. Mixing them up is one of the most common pricing mistakes, because using a margin figure as a markup leaves you underpriced.
| Markup | Profit margin | |
|---|---|---|
| Formula | Profit ÷ Cost | Profit ÷ Selling price |
| $40 cost, $60 price | 50% | 33.33% |
| Can it exceed 100%? | Yes | No |
| Mostly used by | Buyers and merchandisers setting prices | Finance teams reporting profitability |
Margin formula: Margin % = (Selling price − Cost) ÷ Selling price × 100
Price from a target margin: Selling price = Cost ÷ (1 − Margin %). For a 40% margin on a $40 cost: $40 ÷ 0.60 = $66.67.
Markup to Margin Conversion Chart
| Markup | Equals margin | Price on a $100 cost |
|---|---|---|
| 10% | 9.09% | $110.00 |
| 20% | 16.67% | $120.00 |
| 25% | 20.00% | $125.00 |
| 33.33% | 25.00% | $133.33 |
| 50% | 33.33% | $150.00 |
| 75% | 42.86% | $175.00 |
| 100% | 50.00% | $200.00 |
| 150% | 60.00% | $250.00 |
| 200% | 66.67% | $300.00 |
The conversions are: Margin = Markup ÷ (1 + Markup) and Markup = Margin ÷ (1 − Margin).
How to Choose the Right Markup
- Start from your full landed cost. For imported goods, include freight, insurance, duties, customs fees and brokerage, not just the supplier invoice. See our guide to landed cost.
- Cover your overhead. Rent, salaries, software and marketing all have to be paid from gross profit. Our break-even calculator shows how many units you need to sell at a given price.
- Check the market. Your markup has to produce a price customers will accept against competing offers.
- Leave room for discounts. Promotions, volume pricing and wholesale tiers all come out of your margin.
- Review prices when costs change. If supplier prices, tariffs or freight rates go up and your price stays the same, your markup shrinks.
Common Pricing Terms
- Keystone pricing: a 100% markup, so the price is double the cost (a 50% margin).
- Gross profit: selling price minus the cost of goods sold, before overhead.
- Cost-plus pricing: setting prices by adding a fixed markup to cost, which is what this calculator does.
- Net profit margin: profit after all expenses, divided by revenue. See how to improve net profit margin.
Free calculators: Gross margin calculator · Break-even calculator · Inventory turnover calculator · Line of credit calculator · Net 30 calculator · Invoice factoring calculator · Freight class calculator
Free templates: Price list template · Invoice tracker template · Purchase requisition template
Frequently Asked Questions
How do you calculate markup?
Markup = (selling price − cost) ÷ cost × 100. If a product costs $40 and sells for $60, the profit is $20 and the markup is $20 ÷ $40 = 50%.
How do you calculate selling price from markup?
Selling price = cost × (1 + markup %). A $40 cost with a 50% markup gives $40 × 1.5 = $60.
What is the difference between markup and margin?
Both use the same profit, but markup divides it by cost while margin divides it by selling price. A $40 item sold for $60 has a 50% markup but a 33.33% margin.
How do you convert markup to margin?
Margin = markup ÷ (1 + markup). A 50% markup is 0.5 ÷ 1.5 = 33.33% margin. To go the other way, markup = margin ÷ (1 − margin).
What is a 100% markup?
A 100% markup means the selling price is double the cost, so a $40 item sells for $80. This is often called keystone pricing, and it equals a 50% profit margin.
Can profit margin be more than 100%?
No. Margin is profit as a share of the selling price, so it is always below 100%. Markup has no upper limit because it is measured against cost.
Need stock to sell at those margins? Drip Capital offers collateral-free working capital of up to $3M, with funds in 24–48 hours and 30–90 day repayment terms. Check your eligibility
