💲 Markup Calculator
Add a markup percentage to a cost to get the selling price, profit and resulting gross margin.
Quick answer: Selling price = cost × (1 + markup ÷ 100). For example, a 50% markup on a $40 cost gives a $60.00 price and $20.00 profit – a 33.33% gross margin.
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Markup Calculator inputs
Result
Selling price
$60.00
50% markup on $40.00 cost
| Cost | $40.00 |
| Markup (50%) | $20.00 |
| Selling price | $60.00 |
- Profit per unit
- $20.00
- Gross margin
- 33.33%
Selling price for $40.00 cost at common markups
| Markup | Selling price | Profit | Margin |
|---|---|---|---|
| 10% | $44.00 | $4.00 | 9.1% |
| 20% | $48.00 | $8.00 | 16.7% |
| 25% | $50.00 | $10.00 | 20% |
| 30% | $52.00 | $12.00 | 23.1% |
| 40% | $56.00 | $16.00 | 28.6% |
| 50% | $60.00 | $20.00 | 33.3% |
| 75% | $70.00 | $30.00 | 42.9% |
| 100% | $80.00 | $40.00 | 50% |
| 150% | $100.00 | $60.00 | 60% |
| 200% | $120.00 | $80.00 | 66.7% |
How markup pricing works
Markup pricing (cost-plus pricing) starts from what an item costs you and adds a percentage on top to set the selling price. It is simple, guarantees every sale covers its direct cost and is widely used in retail, wholesale, construction and manufacturing.
Selling price = Cost × (1 + Markup ÷ 100) · Profit = Price − Cost · Margin = Profit ÷ Price × 100
Example: a wholesale cost of $40 with a 50% markup → price $60.00, profit $20.00, gross margin 33.33%.
Markup to margin conversion
Margin = Markup ÷ (100 + Markup) × 100 · Markup = Margin ÷ (100 − Margin) × 100
| Markup | Gross margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% (keystone) | 50% |
| 150% | 60% |
| 200% | 66.7% |
Choosing a markup
Your markup has to cover more than the item itself. Overheads such as rent, wages, marketing, card fees and returns all come out of gross profit before you earn anything. A practical approach:
- Estimate monthly overheads and expected unit sales to find the overhead per unit.
- Add your target profit per unit and express both as a percentage of cost.
- Check the resulting price against competitors and what customers will pay.
Tips
- Fast-moving, commodity goods tend to carry lower markups; specialist or custom items higher ones.
- When suppliers raise costs, applying the same percentage markup keeps your margin constant.
- Always quote targets to staff as either markup or margin – never mix the two.
Estimates for educational purposes, not financial or tax advice.
Frequently asked questions
How do I calculate markup percentage from cost and price?
Subtract the cost from the price, divide by the cost and multiply by 100. A $40 item sold for $60 has a (60 − 40) ÷ 40 = 50% markup.
Why is my margin lower than my markup?
Markup is measured against cost and margin against the selling price, which is larger. A 50% markup always equals a 33.33% margin; a 100% markup equals a 50% margin.
What is keystone pricing?
Keystone pricing is a 100% markup – doubling the wholesale cost. It is common in retail and gives a 50% gross margin.
What markup do I need for a given margin?
Markup = margin ÷ (100 − margin) × 100. A 25% margin needs a 33.33% markup and a 40% margin needs a 66.67% markup.