Markup Calculator
Calculate selling price from cost and markup — or find your markup from cost and price. Margin conversion included, updated live.
This is one of the most common pricing mistakes in small business. Markup and margin are calculated from different bases:
Markup % = (Selling Price − Cost) ÷ Cost × 100
Margin % = (Selling Price − Cost) ÷ Selling Price × 100
Example: You buy for $10 and sell for $15.
- Markup = $5 ÷ $10 = 50%
- Margin = $5 ÷ $15 = 33.3%
If you think in margin terms but price in markup terms, you'll underprice every product.
| Markup % | Margin % |
|---|---|
| 25% | 20.0% |
| 33% | 24.8% |
| 50% | 33.3% |
| 100% | 50.0% |
| 200% | 66.7% |
| 400% | 80.0% |
What markup should I use for retail?
Retail markup varies widely by product category. Fashion and apparel typically use 100–200% (keystone pricing and above). Electronics are much lower at 10–30% due to thin margins. Specialty goods and handmade products can support 200–400% markup. Use your industry benchmarks as a starting point, then test price sensitivity.
What is keystone pricing?
Keystone pricing is doubling the wholesale cost — a 100% markup, which gives you a 50% margin. It was a traditional retail standard. Many modern retailers use it as a floor rather than a target, especially for premium or low-competition products.
How do I convert a target margin to a markup?
Use this formula: Markup % = Margin % ÷ (1 − Margin %). So a 40% target margin = 40 ÷ 0.60 = 66.7% markup. The reverse: Margin % = Markup % ÷ (1 + Markup %).
Free to use on your website or blog. Paste one line of HTML — no account or backend needed.