Markup Calculator
Calculate selling price from cost and markup percentage — or find your markup from cost and price. Includes automatic margin conversion.
Markup vs Margin — What's the Difference?
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.
Common Markup to Margin Reference
| Markup % | Margin % |
|---|---|
| 25% | 20.0% |
| 33% | 24.8% |
| 50% | 33.3% |
| 100% | 50.0% |
| 200% | 66.7% |
| 400% | 80.0% |
Frequently Asked Questions
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 %).