About the Markup Calculator
Markup is how much you add to an item's cost to reach its price. Enter a cost and a markup percentage to get the selling price, the profit per unit, and the margin it produces.
How it’s calculated
Selling price = cost × (1 + markup% ÷ 100). Profit = selling price − cost. Margin = profit ÷ selling price × 100.
Example calculation
A $40 cost with a 50% markup sells for $60, a $20 profit and a 33.3% margin.
Frequently asked questions
Is markup the same as profit margin?
No. A 50% markup on cost does not mean a 50% margin — in this example it's a 33.3% margin, because margin is measured against the higher selling price.
How do I pick a markup?
Cover your costs and target margin, then check what the market will bear. Many retailers use keystone pricing (a 100% markup, i.e. doubling cost) as a starting point.
This tool provides estimates for general informational and educational purposes only. Results are based on the values you enter and standard formulas, and may not reflect your specific circumstances.