Add a markup to your cost to get a selling price — and see the margin that markup really gives you.
Selling price
–
Cost × (1 + markup)
Profit per sale
–
Profit margin
–
Margin is always lower than markup
What is the Markup Calculator?
Markup is how much you add on top of your cost to set a price. It is simple to use — but easy to confuse with margin.
Enter your cost and markup percentage to get the selling price, the profit per sale and the real margin that markup gives you.
How to use the Markup Calculator
- Enter your cost.
- Enter the markup percentage (100% doubles the cost).
- Compare the resulting margin with the margin you need.
Understanding your results
- Selling price
- Cost × (1 + markup).
- Profit margin
- Markup ÷ (100 + markup). A 100% markup gives a 50% margin.
Frequently asked questions
What markup should I use?
Many retailers use 50–100% (keystone pricing doubles the cost). Digital products can use much higher markups.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). 50% markup = 33.3% margin.
Why is my margin lower than my markup?
Because margin is measured against the price, which is larger than the cost.