Markup Calculator
Calculate selling price from cost with desired markup percentage, or find markup from cost and price.
Everyday Uses
Retail pricing
Apply consistent markup from wholesale cost to shelf price across your catalog.
Markup vs margin clarity
50% markup is not 50% margin — see both numbers and stop mixing them up.
Trade quotes
Contractors can price materials with standard markup, transparently and fast.
Reverse engineering prices
From shelf price and typical markup, estimate what retailers paid.
Frequently Asked Questions
What is markup and how is selling price calculated from it?
Markup is the percentage added to cost to arrive at selling price. Selling price = Cost × (1 + Markup% ÷ 100). Example: if a product costs $40 and you apply a 75% markup: Selling price = $40 × 1.75 = $70. The $30 difference is profit on cost. Markup is always calculated relative to cost — this is how wholesalers and manufacturers typically price goods.
What is the difference between markup and profit margin?
Markup is calculated on cost; margin is calculated on selling price — they measure the same profit from different angles. For the same product: Cost = $40, Selling price = $70, Profit = $30. Markup = $30 ÷ $40 = 75%. Margin = $30 ÷ $70 = 42.9%. The critical rule: markup% is always higher than the equivalent margin%. A 50% markup = 33.3% margin; a 100% markup (double the cost) = 50% margin. Confusing them leads to serious pricing errors.
How do I convert between markup and margin?
Margin to Markup: Markup% = Margin% ÷ (1 − Margin%). Example: 40% margin → markup = 0.40 ÷ 0.60 = 66.7%. Markup to Margin: Margin% = Markup% ÷ (1 + Markup%). Example: 75% markup → margin = 0.75 ÷ 1.75 = 42.9%. Quick reference: 20% margin = 25% markup; 25% margin = 33.3% markup; 33.3% margin = 50% markup; 50% margin = 100% markup.
What markup percentage should I use for my business?
Markup depends on your cost structure, competition, and target margin: Retail clothing: 50–100% markup (50–67% margin). Electronics retail: 10–30% markup. Food service/restaurants: 200–400% markup on food costs (67–80% margin). Wholesale distribution: 15–30% markup. SaaS software: effectively 80–90%+ margin since marginal cost is near zero. Your markup must cover not just direct costs but also operating expenses (salaries, rent, marketing) while leaving a net profit margin. Work backwards from a target net margin to set the right markup.
What is the keystone pricing strategy in retail?
Keystone pricing is a simple retail strategy of doubling the wholesale cost — a 100% markup (50% gross margin). It was historically the standard for independent retailers to ensure enough gross margin to cover operating expenses and remain profitable. However, high-volume retailers like Amazon and big-box stores operate on much lower markups (15–30%) thanks to scale. In speciality retail, handmade goods, or luxury items, markups of 200–400% are common to reflect labour, scarcity, and brand premium.