Markup Calculator
Fill in any two of cost, markup percentage and selling price and the calculator finds the third, along with your profit per sale and the margin it leaves. Use it to set a price from what an item cost you, to find the markup hiding in a price you already charge, or to work back to the most you can pay a supplier. One trap to know before you start: markup is measured on cost and margin on price, so a 50% markup is a 33.33% margin, not 50%. The markup vs margin guide explains the difference in full.
When to use this calculator
Use this when pricing products you buy and resell or make yourself — retail, wholesale, market stalls, online shops, food service. It is also the quick way to check a supplier's price list, or to see what a cost increase does to your selling price if you hold the same markup.
Fill in any two fields. Leave the one you want to find empty.
Selling Price
Markup
Profit per Sale
Profit Margin
Results are instant — nothing is stored and no account is needed.
Compare Two Pricing Options — Which Earns More?
The highest markup is not always the most profitable price. Charging $25 for something that costs $10 earns $15 a sale; charging $20 earns $10 — but if the lower price sells 70 units instead of 40, it brings in $700 against $600. Enter two options below, with the number of units you expect each to sell, and see which leaves you with more money. Copy the link to share the comparison with a business partner.
Leave units empty to compare a single sale. Costs here are per unit — fixed costs such as rent are not included.
Option A — Total Profit
Option B — Total Profit
Related Calculators
How to Calculate
- Work out your cost per unit, including shipping and packaging you pay.
- Decide the markup percentage you want to add.
- Divide the markup percentage by 100 and add 1 — a 40% markup becomes 1.40.
- Multiply the cost by that number to get the selling price.
- To find markup from a price instead, subtract cost from price, divide by cost, and multiply by 100.
Formula
For a 40% markup on $50: $50 × 1.40 = $70. Reversed, Markup % = (Price − Cost) / Cost × 100, so ($70 − $50) / $50 × 100 = 40%.
Examples
Cost $50, markup 40%
$70 price — 28.57% margin
Cost $18, sells for $45
150% markup — $27 profit
Sells for $120, markup 60%
$75 cost — $45 profit
Use Cases
- Setting retail prices from wholesale costs
- Finding the markup on a price you already charge
- Working out the most you can pay a supplier and still hit your price
- Determining menu prices from ingredient costs
- Repricing after a supplier raises costs
FAQ
How do you calculate markup percentage?
Markup % = ((Selling Price − Cost) / Cost) × 100. For a product that costs $40 and sells for $60: $20 / $40 × 100 = 50%. Enter cost and selling price above and leave markup empty to get it without the arithmetic.
What markup do I need for a 40% profit margin?
66.67%. Convert with markup = margin / (1 − margin): 0.40 / 0.60 = 0.6667. Applying a 40% markup instead leaves you with a 28.57% margin, which is why prices set by "adding 40%" so often come up short.
What is the difference between markup and margin?
Markup is profit measured against cost. Margin is the same profit measured against the selling price. A 50% markup gives a 33.33% margin, not 50%. If you are starting from a sale you have already made, the profit margin calculator is the quicker route.
What is keystone pricing?
Keystone is retail shorthand for doubling the wholesale cost: a 100% markup, which is a 50% margin. It is a starting convention for gifts, clothing and homeware, not a rule — groceries and electronics sell on far thinner markups, jewellery and cosmetics on much higher ones.
Can markup be more than 100%?
Yes. Markup has no upper limit because it is measured against cost. A $5 item sold for $20 carries a 300% markup. Margin on that same sale is 75%, and margin can never reach 100%.
Which costs should I mark up — just the product, or shipping and packaging too?
Mark up the full cost of getting one unit ready to sell: the product, inbound shipping, packaging and any per-unit duties. A $8 product with $2 of freight and packaging costs you $10. Mark up only the $8 by 50% and you charge $12, which is a 20% markup on what you really spent. The guide to calculating markup walks through costing a whole batch.
What is a 50% markup on $40?
A 50% markup on $40 adds $20, giving a selling price of $60.
How does markup affect ROI?
A higher markup increases the gross profit on each unit sold, which directly affects your return on inventory investment. If you want to measure the return on what you've invested in stock, the ROI calculator can quantify that return once you know your selling price and cost.
Advanced Scenarios
Leaving room for a sale
A $40 item marked up 50% sells for $60. Run a 20% promotion and the price drops to $48, which is only a 20% markup. To still earn 50% after a 20% discount, set the list price at $60 / 0.80 = $75. Check any promotion with the discount calculator before you announce it.
Fees that are a percentage of the price
Marketplace and card fees are taken from the selling price, so they cannot simply be added to cost. At a $60 price with 10% in fees you keep $54, which is a 35% markup on a $40 cost. To keep $60 after a 10% fee, charge $60 / 0.90 = $66.67.
When your supplier raises prices
Holding the same markup percentage passes on more than the increase. If cost rises from $40 to $44 at a 50% markup, the price goes from $60 to $66: the customer pays $6 more for a $4 increase. Holding the same dollar profit instead gives $64. Decide which one you are protecting.
Prices that include VAT or sales tax
Markup is worked out on the price before tax. If your shelf price must include 20% VAT, calculate the marked-up price first, then add the tax with the VAT calculator. Marking up a tax-inclusive figure overstates your profit.
Markup to Margin Conversion Table
What each markup leaves as margin. Margin = markup / (1 + markup).
| Markup on cost | Profit margin | Multiply cost by |
|---|---|---|
| 10% | 9.09% | × 1.10 |
| 20% | 16.67% | × 1.20 |
| 25% | 20% | × 1.25 |
| 30% | 23.08% | × 1.30 |
| 40% | 28.57% | × 1.40 |
| 50% | 33.33% | × 1.50 |
| 75% | 42.86% | × 1.75 |
| 100% | 50% | × 2.00 |
| 150% | 60% | × 2.50 |
| 200% | 66.67% | × 3.00 |