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Markup Calculator

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Enter your cost and desired markup percentage to find the correct selling price - and see the resulting profit margin, which is always a different number than the markup.

Markup Calculator

Live
Selling price
$60.00
Profit per unit
$20.00
Resulting margin
33.33%

The formula

Selling price = Cost x (1 + Markup % / 100) Resulting margin = (Profit / Price) x 100
Example

A $40 cost with a 50% markup: price = 40 x 1.50 = $60.00, profit = $20.00 - but that's only a 33.33% margin, not 50%.

Step-by-step guide

  1. Enter your cost per unit.
  2. Enter your desired markup percentage.
  3. Read the selling price, and check the resulting margin - it's always lower than the markup percentage for any markup above 0%.

If you're actually targeting a margin, not a markup

If your real goal is hitting a specific profit margin (not markup), this calculator will give you the wrong price if you type your margin target into the markup field - the two require different formulas. To price for a target margin instead, use: Price = Cost / (1 - Target margin %). For example, targeting a 33.33% margin on a $40 cost: Price = 40 / (1 - 0.3333) = $60.00 - which happens to match this example, since a 50% markup and 33.33% margin describe the exact same price.

Common mistakes

Typing a target margin percentage into this markup calculator, expecting the same price - margin and markup use different formulas and produce different prices for the same percentage number.
Forgetting to include all real costs (shipping, packaging, payment processing fees) in the cost base - a markup calculated on an incomplete cost figure overstates actual profit.

Frequently asked questions

What markup percentage should I use?

It varies significantly by industry - retail commonly uses 50-100% markup (called "keystone" pricing at 100%), while some service and specialty businesses use much higher or lower figures. Research typical markups in your specific industry as a starting benchmark.

Why does a 100% markup only equal a 50% margin?

Doubling the cost (100% markup) means the profit exactly equals the cost. But margin divides that same profit by the higher selling price, not the cost - so profit/price works out to exactly half, or 50% margin.

Can markup ever exceed 100% legitimately?

Yes, markup has no mathematical ceiling - unlike margin, which approaches but never reaches 100%, markup can be 200%, 500%, or more, common in industries like jewelry, eyewear, or specialty low-volume goods.

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