Markup calculator
Enter your cost and either a selling price or a markup. You'll get the other one, plus the margin and the profit on each unit.
Formula
Markup = (price − cost) ÷ cost × 100
To go the other way: price = cost × (1 + markup ÷ 100). Markup is a share of the cost, so it's always higher than margin for the same item.
How to calculate markup: a worked example
A store buys a ceramic mug for $15 and sells it for $40.
- Profit per unit = $40 − $15 = $25
- Markup = $25 ÷ $15 = 166.7%
- Margin = $25 ÷ $40 = 62.5%
A 166.7% markup on this mug is the same as a 62.5% margin.
What markup should you use?
Pick the markup that gives the margin your business needs, then check it against what buyers will pay. Convert with margin = markup ÷ (100 + markup), both in percent.
Doubling the cost, a 100% markup, gives a 50% margin. That's the retail convention called keystone pricing, and it's often too thin for a store that pays for ads and shipping. The table converts common markups.
| Markup | Margin | Price for a $10 cost |
|---|---|---|
| 25% | 20.0% | $12.50 |
| 50% | 33.3% | $15.00 |
| 100% | 50.0% | $20.00 |
| 150% | 60.0% | $25.00 |
| 200% | 66.7% | $30.00 |
| 300% | 75.0% | $40.00 |
Questions about markup
- Is a 100% markup a 100% margin?
- No. A 100% markup doubles the cost, which is a 50% margin. Margin can never reach 100%, because that would mean the product cost nothing, while markup has no upper limit.
- Which should I use for pricing, markup or margin?
- Set prices with margin, because your costs and profit targets are shares of revenue. Markup is handy when a supplier quotes a cost and you want a quick price. The calculator shows both at once.
- How do I calculate markup from a wholesale price?
- Use the wholesale price as the cost. If you buy at $20 and sell at $50, the markup is ($50 − $20) ÷ $20 = 150%, and the margin is $30 ÷ $50 = 60%.
Do it with Replo
Sell it at the price you set
Describe the product and its price. Replo builds a store with checkout working, ready to sell.
Prompt: “build a store for my ceramic mugs at $40 each”