Markup Calculator
Enter your cost price and markup percentage to instantly get the selling price, profit, and gross margin.
A 50% markup is NOT a 50% margin — knowing the difference could be the most valuable thing you learn about pricing today.
50%
Common retail markup — but it only produces a 33% gross margin, not 50%
100%
Keystone markup used in many retail sectors — doubles the cost price
33%
What a 50% markup actually produces as a profit margin
Markup, margin, and pricing strategy
The numbers behind every price tag.
The keystone markup rule
Many retailers use a 'keystone' markup of 100% — doubling the wholesale cost to get the retail price. This produces a 50% gross margin and has been a retail rule of thumb for decades, though competitive pricing pressure often forces lower markups.
Why the math trips people up
A common mistake: setting a 30% markup thinking you have a 30% margin. You don't — you have a 23% margin. Always calculate both and know which one your pricing model targets. Use this calculator to check before setting prices.
Margins compound through the supply chain
Every step in a supply chain takes a markup. A product that costs $10 to make may be marked up 100% to $20 by the manufacturer, then 50% to $30 by the distributor, then 100% to $60 at retail. Understanding each margin helps you negotiate.
Markup vs margin — $50 cost price
Markup is the percentage added to the cost of a product to arrive at its selling price. A 50% markup on a $40 product gives a $60 selling price. It's the natural pricing method for product businesses — you know your cost, you apply a markup, you have your price. The essential caveat: markup percentage and margin percentage are not the same number. A 50% markup produces a 33.3% margin — and confusing the two systematically underprices your products.
| Markup % | Selling price | Profit | Margin % |
|---|---|---|---|
| 25% markup | $62.5 | $12.5 | 20% margin |
| 33% markup | $66.5 | $16.5 | 24.81203007518797% margin |
| 50% markup | $75 | $25 | 33.33333333333333% margin |
| 75% markup | $87.5 | $37.5 | 42.857142857142854% margin |
| 100% markup | $100 | $50 | 50% margin |
| 200% markup | $150 | $100 | 66.66666666666666% margin |
How do you calculate markup percentage?
Markup % = (Selling price − Cost) ÷ Cost × 100. A $75 item that cost $50 to produce: ($75 − $50) ÷ $50 × 100 = 50% markup. To find selling price from a target markup: Selling price = Cost × (1 + Markup%). $50 × (1 + 0.50) = $75. To find cost from selling price and markup: Cost = Selling price ÷ (1 + Markup%). $75 ÷ 1.50 = $50. These three rearrangements of the same formula cover all markup calculation scenarios.
What markup percentage is typical for different industries?
Retail clothing: 100–300% (doubling to tripling the wholesale price). Restaurant food: 200–400% over food cost (a $5 plate costs $1.25–$1.67 in ingredients). Electronics: 10–25% (low margin, high volume). Jewellery: 100–300%. Pharmaceuticals: 200–500% over manufacturing cost. Contractors/trades: 20–50% on materials. 'Keystone markup' (100% — doubling the cost) is a traditional retail benchmark but has largely been superseded by data-driven pricing. For online retail competing on price, margins are compressed: 15–35% markup is common.
How do you convert between markup and margin?
Convert markup to margin: Margin = Markup ÷ (1 + Markup). 50% markup → 50 ÷ 150 = 33.3% margin. 100% markup → 100 ÷ 200 = 50% margin. 200% markup → 200 ÷ 300 = 66.7% margin. Convert margin to markup: Markup = Margin ÷ (1 − Margin). 33.3% margin → 0.333 ÷ 0.667 = 50% markup. 50% margin → 0.50 ÷ 0.50 = 100% markup. Memorise the markup-margin pairs: 25%/20%, 50%/33.3%, 100%/50%, 200%/66.7% — they come up constantly in pricing discussions.
How the Markup Calculator Works
Formula
Selling Price = Cost × (1 + Markup% ÷ 100)
Profit = Selling Price − Cost
Gross Margin % = (Profit ÷ Selling Price) × 100Enter your cost price
What you pay to produce, buy, or deliver the item.
Set your markup percentage
Use a preset or slide to any value. Retail typically uses 50–100%.
Read the results
Selling price, profit per unit, and the resulting gross margin percentage.
Markup is applied to cost to determine selling price. It's the most common way to set prices from a cost-based perspective.
Note that this produces a lower margin percentage than the markup percentage. To achieve a target margin, use the Profit Margin Calculator in reverse — or simply run scenarios here until the margin % hits your target.
Frequently Asked Questions
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