Markup Calculator
Apply a markup to your cost to get the selling price, profit and the resulting profit margin.
How it works
Price = cost × (1 + markup%) · Margin % = (price − cost) ÷ price × 100
Markup adds a percentage of the cost on top of the cost itself, so the selling price is cost × (1 + markup). The resulting margin is always lower than the markup, because margin divides the same profit by the larger selling price. Converting between them: margin = markup ÷ (1 + markup).
Worked example
A $80 item marked up 25% sells for $100, a $20 profit. That $20 measured against the $100 price is only a 20% margin — proof that markup and margin are different numbers for the same sale.
Frequently asked questions
How is markup different from margin?
Markup measures profit against cost (profit ÷ cost); margin measures it against the selling price (profit ÷ price). A 25% markup on cost equals only a 20% margin, because the price base is larger than the cost base.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin; a 100% markup (keystone pricing) is a 50% margin.
What markup do retailers use?
Keystone pricing — a 100% markup, or doubling the cost — is a common retail baseline, though categories with high turnover or heavy competition often run thinner.
Related calculators
Educational estimate, not financial advice.