Markup Calculator
Enter a cost and a markup to get the selling price, a cost and a price to get the markup, or a price and a markup to get back to the cost. Profit and margin come with every answer.
Last updated November 3, 2026
Result
Selling price = $120.00
| Measure | Value |
|---|---|
| Cost | $80.00 |
| Selling price | $120.00 |
| Profit | $40.00 |
| Markup | 50% |
| Margin | 33.33% |
Markup is measured against cost and margin against price, so the margin is always the smaller figure. Money is rounded to cents.
Show the work
Formula: profit = price − cost; markup = profit ÷ cost × 100; margin = profit ÷ price × 100; price = cost × (1 + markup ÷ 100).
- You entered a cost of $80.00 and a markup of 50%.
- Selling price: $80.00 × (1 + 50% ÷ 100) = $120.00.
- Profit: $120.00 − $80.00 = $40.00.
- Markup: $40.00 ÷ $80.00 × 100 = 50%.
- Margin: $40.00 ÷ $120.00 × 100 = 33.33%.
Result: Selling price = $120.00; profit $40.00; margin 33.33%.
How markup is calculated
markup = (price − cost) ÷ cost × 100
price = cost × (1 + markup ÷ 100)
cost = price ÷ (1 + markup ÷ 100)
Markup is the amount you add on top of what an item cost you, written as a percentage of that cost. Add 50% to an $80 item and the price is $80 × 1.5 = $120, which leaves $40 of profit.
The same three quantities can be solved in any direction. Knowing the cost and the price gives the markup, and knowing the price and the markup lets you work back to the cost, which is handy when a supplier quotes only a retail price.
Money is rounded to cents, and the profit and margin shown are worked from those rounded amounts, so every figure on the screen agrees with the others.
See how we calculate for the formulas, sources and review schedule behind every calculator.
Also useful alongside this calculator: Percentage Calculator and Discount Calculator.
Converting markup to margin
Both figures describe the same profit but divide it by different amounts. Markup divides by the cost, while margin divides by the selling price. To convert, use margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin), with percentages written as decimals.
Markups of 10%, 25%, 50%, 100%, 150% and 200% match margins of 9.09%, 20%, 33.33%, 50%, 60% and 66.67%. A 100% markup is only a 50% margin, and the gap widens as the markup grows. Going the other way, a 40% margin needs a markup of 66.67%, not 40%.
Why the margin is always smaller
The price is the cost plus the profit, so the price is always bigger than the cost. Dividing the same profit by a bigger number gives a smaller percentage. A 100% markup can never reach a margin of 100%, because the margin only approaches that figure as the markup climbs without limit.
This is why quoting one when you mean the other is expensive. Adding a 40% markup to a $100 cost gives a $140 price and a margin of 28.57%. If your plan needed a 40% margin, the price should have been about $166.67 instead.
Keystone pricing in retail
Keystoning means doubling the cost, which is a 100% markup. A $40 item is priced at $80, leaving $40 of profit and a 50% margin. Many shops start from this rule and then adjust for competition, brand strength and how fast the item sells.
A keystone price is a starting point, not a guarantee. Rent, wages, card fees and discounts all come out of that margin, so check it against your own costs before you commit to a price list.
Applying one markup to several costs
A single markup rule is easy to apply across a range. At 40%, costs of $12.50, $30, $85 and $240 become prices of $17.50, $42, $119 and $336. The full set costs $367.50 and sells for $514.50, so the profit on the batch is $147.
Run the calculator once per item, or work out the multiplier yourself: 1 plus the markup as a decimal. The multiplier for 40% is 1.4, and every cost in the range is multiplied by it. Selling below cost is also possible here: choose the cost and price mode and the markup comes out negative, flagged as a loss.
How to use the Markup Calculator
- Choose what you want to find: the selling price, the markup or the cost.
- Enter the two values you know. Costs and prices must be above zero.
- Read the cost, selling price, profit, markup and margin.
- Open Show the work to see each formula with your numbers, then Copy, Print or Share.
Worked example
An item costs $80 and you try five markups. At 50% the price is $80 × 1.5 = $120, the profit is $40 and the margin is $40 ÷ $120 = 33.33%. The table shows the other four.
| Markup | Price | Profit | Margin |
|---|---|---|---|
| 20% | $96.00 | $16.00 | 16.67% |
| 30% | $104.00 | $24.00 | 23.08% |
| 50% | $120.00 | $40.00 | 33.33% |
| 75% | $140.00 | $60.00 | 42.86% |
| 100% | $160.00 | $80.00 | 50% |
Frequently asked questions
What is the markup formula?
Markup is the selling price minus the cost, divided by the cost, times 100. For an $80 cost sold at $120, that is $40 ÷ $80 × 100 = 50%.
How do I add a percentage markup to a cost?
Multiply the cost by 1 plus the markup as a decimal. For a 25% markup the multiplier is 1.25, so a $60 item sells for $75.
Can a markup be more than 100%?
Yes. A markup above 100% means the price is more than double the cost. A $10 cost at a 300% markup sells for $40, which is a 75% margin.
What does a negative markup mean?
It means the selling price is below the cost, so you lose money on each sale. A $50 item sold for $40 has a markup of −20% and a margin of −25%.
Why can the cost not be zero?
Markup divides profit by the cost, and dividing by zero has no answer. The calculator asks for a cost above zero, and a selling price above zero as well.