Markup Calculator
Markup pricing is the simplest way to price a product: take the cost, add a percentage, sell. This markup calculator gives you the selling price, the profit per unit and — critically — the profit margin that markup actually produces.
Because margin and markup diverge as percentages grow, always check the margin column before committing to a price list.
Enter valid values to see the results.
Formula
The margin produced by a markup is always smaller: margin = markup ÷ (100 + markup). A 100% markup (doubling the cost) yields exactly a 50% margin.
What you need
- Cost: your full unit cost — product, packaging, inbound shipping and payment fees if they scale per unit.
- Markup: the percentage added on top of cost. Retail markups commonly run 50–100% (keystone pricing is 100%).
- Check the resulting margin against your overheads: the margin must cover rent, wages, marketing and still leave profit.
Worked example
Practical tips
- Keystone pricing (100% markup) is the traditional retail baseline — adjust for your overheads, not habit.
- Use the Profit Margin Calculator in reverse when you know the margin you need: Price = Cost ÷ (1 − margin).
- Per-unit fixed costs (like marketplace fees) belong in the cost field, or your markup silently shrinks.
- Round prices psychologically after calculating: $64 often sells better as $65 or $69.
Price and margin for a $40 cost at common markups
| Markup | Price | Margin |
|---|---|---|
| 25% | $50.00 | 20% |
| 50% | $60.00 | 33.3% |
| 75% | $70.00 | 42.9% |
| 100% | $80.00 | 50% |
Common mistakes
- 1 Believing a 50% markup means “half the price is profit” — it is a third.
- 2 Applying markup to an incomplete cost that omits shipping, fees or packaging.
- 3 Using one markup for all products regardless of demand, competition or perishability.
Frequently asked questions
How do I calculate a 30% markup?
Multiply the cost by 1.30. A $50 cost becomes $65. The profit is $15 and the margin is 15 ÷ 65 = 23.1%.
What markup do I need for a 50% margin?
100%: Price = Cost ÷ (1 − 0.5) = 2 × Cost. In general, markup = margin ÷ (1 − margin).
What is keystone pricing?
Doubling the wholesale cost — a 100% markup producing a 50% gross margin. It is a starting heuristic, not a rule; many categories need more or less.
Should markup cover my rent and wages?
Indirectly, yes: the gross margin your markup creates must cover all overheads before there is net profit. Estimate overheads per unit and check the margin covers them.