How it works
- Step 1
Enter your cost
What one unit costs you to buy or make.
- Step 2
Choose your markup
Type the markup you want, or your selling price to see the markup you get.
- Step 3
See the price and margin
Get the selling price, profit and the margin that markup gives you.
The markup formula
Markup = (selling price − cost) ÷ cost × 100. To go the other way, selling price = cost × (1 + markup).
Worked example
A product costs you $12. With a 150% markup the price is 12 × 2.5 = $30, and the profit is $18. That same $18 is a 60% margin, because margin divides by the price instead of the cost.
Markup vs. margin
The two are easy to mix up, and pricing with the wrong one leaves money on the table: a 50% markup is only a 33.3% margin. Check what your target margin means in markup with the table below, or use the profit margin calculator.
| Margin | Markup |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
| 70% | 233.3% |
| 75% | 300% |
| 80% | 400% |
Common markup strategies
- Keystone (100%): double the cost. Simple, and gives a 50% margin.
- Cost-plus: a fixed markup on every product, easy to apply to a large catalog.
- Value-based: price from what customers will pay, then check the markup still covers your costs.
Frequently asked questions
Subtract the cost from the selling price, divide by the cost and multiply by 100. A $12 item sold for $30 has an $18 profit, which is a 150% markup.
Multiply the cost by one plus the markup. For a 150% markup on a $12 cost: 12 × (1 + 1.5) = $30.
No. Markup compares profit to cost and margin compares it to the selling price, so the markup is always the larger number. A 100% markup (doubling the cost) is a 50% margin.
Keystone pricing means a 100% markup: selling at double the cost. It is a common retail starting point and gives a 50% margin.
Work back from the margin you need. If ads, fees and shipping take 30% of revenue and you want 20% left as profit, you need at least a 50% margin, which is a 100% markup.
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