Markup Calculator
Enter a cost and markup to get your selling price, or change any number and the rest update.
Markup and selling price calculator
Margin to markup converter
Reverse markup calculator
How to Calculate Markup
Markup is how much you add to your cost to set a selling price, written as a percentage of the cost. A 100% markup means you charge twice what the item cost you.
Markup = (Selling price − Cost) ÷ Cost × 100
- Subtract the cost from the selling price to get your profit.
- Divide the profit by the cost.
- Multiply by 100 to turn the result into a percentage.
Example: a product costs $20 and sells for $50. The profit is $30, and $30 ÷ $20 = 1.5, so the markup is 150%.
How to Find Selling Price From Markup
To set a price from a markup, multiply your cost by one plus the markup. Write the markup as a decimal, so 40% becomes 0.40.
Selling price = Cost × (1 + Markup)
A 40% markup on a $25 cost gives you $25 × 1.40 = $35. The number in brackets is your price multiplier. A 50% markup is a 1.5× multiplier, and a 100% markup is a 2× multiplier.
Use your full cost, not just materials. For a handmade or custom product, that includes your labor, machine time, packaging, and any fees you pay when the item sells. Our craft pricing calculator adds these up before applying a markup.
Markup vs. Margin
Markup and margin use the same profit but compare it to different numbers. Markup divides profit by cost. Margin divides profit by the selling price. On the same sale, markup is always the higher number.
Margin = Markup ÷ (1 + Markup)
Markup = Margin ÷ (1 − Margin)
| Markup | Profit margin | Price on $100 cost |
|---|---|---|
| 10% | 9.09% | $110.00 |
| 20% | 16.67% | $120.00 |
| 25% | 20% | $125.00 |
| 30% | 23.08% | $130.00 |
| 40% | 28.57% | $140.00 |
| 50% | 33.33% | $150.00 |
| 75% | 42.86% | $175.00 |
| 100% | 50% | $200.00 |
| 150% | 60% | $250.00 |
| 200% | 66.67% | $300.00 |
| 300% | 75% | $400.00 |
Mixing them up costs money. If you want a 40% margin and add a 40% markup instead, you earn a 28.57% margin. To get the full 40%, you need a 66.67% markup. For margin targets, gross margin, and net margin, use our profit margin calculator.
Common Markup Rules
Keystone pricing
Keystone pricing is a 100% markup, so you sell at double your cost and earn a 50% margin. Many retailers use it as a starting point when they buy products wholesale.
Wholesale and retail markup
If you sell to shops, remember that they mark up your wholesale price too. A common approach for handmade goods is to double your cost for the wholesale price, then double that again for the retail price. Your retail price needs to leave room for both.
Cost-plus pricing
Cost-plus pricing means adding the same markup to every product. It’s simple, but it ignores what customers will pay. Personalized and custom items often support a higher markup than standard ones, so test your prices instead of using one number everywhere.
How to Calculate Reverse Markup
Reverse markup works back from the selling price to the original cost. It’s useful when you know a retail price and the markup a seller uses, and want to know what they paid.
Cost = Selling price ÷ (1 + Markup)
An item that sells for $60 with a 50% markup cost $60 ÷ 1.50 = $40. The profit is $20, which is a 33.33% margin.
Frequently Asked Questions
What is a 30% markup on $100?
A 30% markup on a $100 cost is $30, so the selling price is $130. The profit margin on that sale is 23.08%.
How do you calculate a 50% markup?
Multiply the cost by 1.5. A $40 cost with a 50% markup sells for $60, with $20 in profit.
Is markup the same as profit margin?
No. Markup compares profit to the cost, and margin compares profit to the selling price. A 100% markup equals a 50% margin.
Can markup be more than 100%?
Yes. Markup has no upper limit. A 200% markup means you sell at three times your cost. Profit margin, by contrast, always stays below 100%.
What is keystone pricing?
Keystone pricing means setting the selling price at double the cost, which is a 100% markup and a 50% margin.
How do I calculate markup in Excel?
Put the cost in cell A2 and the selling price in B2, then enter =(B2-A2)/A2 in another cell and format it as a percentage. To get a price from a markup in C2, use =A2*(1+C2).
What markup should I use for handmade products?
There’s no single right number. Start from a full cost that includes your time, then make sure the markup still leaves profit after selling fees and shipping. If you also sell wholesale, your retail price needs to cover the shop’s markup as well.
More Free Calculators
- Profit Margin Calculator: margin, markup, and selling price
- Etsy Fee Calculator: every Etsy fee and your profit per order
- Craft Pricing Calculator: wholesale and retail prices for handmade items
- Laser Engraving Price Calculator: job quotes from laser time and setup
These calculators provide estimates for general planning and are not financial, tax, or accounting advice.