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Markup Calculator

Add a percentage on top of your cost and see the selling price, the profit per unit and what that markup means as a margin.

Quick answer

Selling price = cost × (1 + markup ÷ 100). A $40 item with a 100% markup sells for $80 — a 50% margin. Markup is measured on cost, margin on price; check yours with the profit margin calculator.

  • Free
  • No sign-up
  • Business
  • Updated October 2026
%

Selling price

$60.00

Profit per unit
$20.00
Equivalent gross margin
33.33%
Show the working
  1. Price = $40.00 × (1 + 50 ÷ 100) = $60.00

About the Markup calculator

Cost-plus pricing is the simplest way to set a price: take what an item costs you and add a fixed percentage. Retailers often talk about “keystone” pricing, which is a 100% markup — doubling the wholesale cost.

The catch is that markup and margin are not interchangeable. If you plan finances around a 30% margin but price with a 30% markup, you will earn less than you expected. The calculator shows the equivalent margin under the price so you can check.

How to use it

  1. Enter your cost per unit.
  2. Enter the markup percentage you want to add.
  3. The selling price, profit per unit and equivalent gross margin appear instantly.

The formula

Selling price = Cost × (1 + Markup % ÷ 100)

  • Profit per unit = Selling price − Cost.
  • Equivalent margin = Profit ÷ Selling price × 100.

Worked example

Keystone pricing on a $40 item

  1. Markup 100%: $40 × 2 = $80 selling price.
  2. Profit: $40 per unit.
  3. Margin: $40 ÷ $80 = 50%.

Frequently asked questions

What markup gives a 50% margin?

A 100% markup. To convert any margin to markup: markup = margin ÷ (1 − margin). For 50%: 0.5 ÷ 0.5 = 1.0 → 100%.

What is a typical retail markup?

Many physical retail categories use 50–100% on wholesale cost; jewellery and some fashion can go well above that. Your markup also has to cover rent, staff and marketing, not just the product.

Should I include shipping in the cost?

Yes, if you pay it. Inbound freight, packaging and payment processing fees are real per-unit costs. Leaving them out makes your markup look healthier than it is.

Results are estimates for planning — check critical figures with a professional or the official source.

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