Markup Calculator
Find the selling price from your cost and markup, or the markup from cost and price. Advanced adds tax, price endings like .99, quantities and supply-chain markups.
Profit as a share of the cost.
Profit as a share of the price. Shows the markup you need.
Shipping in, packaging, labels. Added to the cost before the markup.
For a bulk order or a month of sales.
Markup is always worked out on the price before tax. US shelf prices usually show tax added at the till; UK, EU, India and Gulf prices usually include VAT or GST.
If you make or import goods and sell to a wholesaler or shop, see what the end customer pays.
Markup ↔ margin converter and table
| Markup | Margin | Price | Profit |
|---|
How your markup is worked out
Markup = profit ÷ cost. Price = cost × (1 + markup).
- 1
Markup amount
$50.00 × 40%= $20.00
- 2
Selling price
$50.00 + $20.00= $70.00
- 3
Same as a margin of
$20.00 ÷ $70.00= 28.57%
- 4
Keystone check
$50.00 × 2= $100.00a 100% markup
Read more: the formula, a worked example, markup vs margin, tax, price endings and keystone
Markup is how much you add on top of what an item costs you, as a share of that cost. It is the number most shops, wholesalers and tradespeople use to set prices. Its twin, margin, is the same profit as a share of the selling price. For margin-first pricing with marketplace fees, discounts and net margin, use the profit margin calculator.
The formula
profit = cost × markup ÷ 100
selling price = cost × (1 + markup ÷ 100)
markup % = (price − cost) ÷ cost × 100
cost = price ÷ (1 + markup ÷ 100)
margin = markup ÷ (1 + markup) · markup = margin ÷ (1 − margin)
Worked example
An item costs you 50 and you add a 40% markup. The markup is 50 × 0.40 = 20, so the selling price is 50 + 20 = 70. As a margin that is 20 ÷ 70 = 28.57%. You could discount by up to 28.57% (20 off) before selling at a loss, and the keystone price (double the cost) would be 100.
Markup vs margin
Because markup divides by the smaller number (the cost), it is always bigger than the margin on the same sale. Mixing them up is the most common pricing mistake: a 40% markup is not a 40% margin.
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 33.33% | 25% |
| 40% | 28.57% |
| 50% | 33.33% |
| 66.67% | 40% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.67% |
| 300% | 75% |
From a target margin to the markup you need
If you know the margin you want, convert it first: markup = margin ÷ (1 − margin). A 40% margin needs 0.4 ÷ 0.6 = 66.67% markup, so a cost of 60 sells for 60 × 1.6667 = 100.
Keystone pricing
Keystone means doubling the cost: a 100% markup and a 50% margin. Many shops use it as a starting point, then go higher for slow sellers or lower for items that sell quickly. Triple keystone is a 200% markup (price = 3 × cost, a 66.67% margin).
Sales tax and VAT
Work out markup on the price before tax. With tax added on top, a price of 70 plus 10% tax is 70 × 1.1 = 77 at the till. With tax included, a shelf price of 84 at 20% VAT is 84 ÷ 1.2 = 70 before tax, still a 40% markup on 50.
Price endings like .99
The calculator rounds the price the customer sees up to the ending you pick, so you never earn less than your markup. A price of 70 becomes 70.99, which lifts the profit to 20.99 and the markup to 41.98%. With tax included, the ending is applied to the tax-included shelf price. "Ends in 9" (19, 29, 79…) suits currencies without cents in everyday use.
Extra costs, bulk orders and the supply chain
- Extra cost per item (shipping in, packaging) is added to the cost before the markup, so a cost of 50 plus 5 shipping at 40% markup sells for 55 × 1.4 = 77.
- Quantity multiplies everything: 100 items at a cost of 50 and a price of 70 is 5,000 of cost, 7,000 of sales and 2,000 of profit.
- Supply-chain markups stack by multiplying, not adding. Sell at 70 to a wholesaler who adds 30% (91), then a shop adds 50%: the end customer pays 136.50, a combined 173% markup on your cost of 50, not 40 + 30 + 50 = 120%.
Markup here is gross: it covers only the item's cost (plus any extra cost you enter). Rent, wages, card fees and other running costs still need to come out of the profit. Tax rates differ by country and product; enter the rate that applies to you.
Common questions
How do I calculate markup?
Take the cost away from the selling price to get the profit, then divide the profit by the cost and multiply by 100. An item that costs 50 and sells for 70 makes 20 profit, which is a 40% markup. To go the other way, multiply the cost by 1 plus the markup: 50 × 1.4 = 70.
What is the difference between markup and margin?
Markup is profit as a share of the cost; margin is profit as a share of the selling price. The same sale always has a bigger markup than margin. A 40% markup on a cost of 50 gives a price of 70 and a profit of 20, which is only a 28.57% margin.
What markup do I need for a 50% margin?
A 100% markup. Markup = margin ÷ (1 − margin), so 0.5 ÷ 0.5 = 1, or 100%. Doubling the cost gives a 50% margin; retailers call this keystone pricing. For a 40% margin you need a 66.67% markup, and for a 25% margin a 33.33% markup.
What is keystone pricing?
Keystone pricing means selling at double the cost: a 100% markup, which is a 50% margin. An item that costs 50 sells for 100. It is a quick rule of thumb in retail, but check it against your other costs and what customers will pay.
Should markup include sales tax or VAT?
No. Work out markup on the price before tax, because the tax goes to the government. If a shelf price of 84 includes 20% VAT, the price before tax is 84 ÷ 1.2 = 70, and that is the figure to compare with your cost of 50: a 40% markup.
How much can I discount before I make a loss?
Up to your margin, not your markup. With a 40% markup, a cost of 50 and a price of 70, the most you can take off is 20, which is 28.57% of the price. Take off 40% and the price falls to 42, below your cost.
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