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Markup Calculator

Calculate the markup percentage based on your cost and desired sales price, or find the ideal price for a target margin.

Calculate

Markup Percentage

50.0%

Price Structure

Comparing the base cost to the added markup (profit).

67%
Cost: 50
Markup/Profit: 25

Visualization based on calculated inputs

Total Profit$25.00
Resulting Margin33.3%
Break-even Point$50.00

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Quick answer

Markup is the difference between an item's cost and its selling price, expressed as a percentage of the cost. Formula: Markup (%) = ((Revenue - Cost) / Cost) * 100. If you buy a product for $50 and want a 100% markup, you sell it for $100.

The simple way to set your product prices.

Formula

Profit = Revenue - Cost. Markup (%) = (Profit / Cost) * 100. Sales Price = Cost * (1 + Markup/100).

How It Works

  1. Input the price you paid for the product (Cost).
  2. Enter the price you want to sell it for (Revenue).
  3. Analyze the resulting Markup vs. Margin difference.
  4. Adjust the revenue to find the sweet spot for your business model.

Formula:

Markup = (Price - Cost) / Cost

Examples

Buy for $10, Sell for $15.

Result: 50% Markup. (5/10) * 100.

Buy for $100, Sell for $200.

Result: 100% Markup. This is Keystone Pricing.

Frequently Asked Questions

How do I calculate price from cost and markup?

Formula: Price = Cost * (1 + Markup/100). For a $50 cost and 40% markup: $50 * 1.4 = $70.

What is a "Keystone" markup?

A keystone markup is when you double the cost of the item, resulting in a 100% markup or a 50% profit margin.

Why not use profit margin instead?

Markup is easier for salespeople to understand (how much to add), while margins are better for accountants (how much is left).

Key facts

Markup is a cost-plus pricing strategy commonly used in retail and manufacturing. A 100% markup (doubling the cost) is known as "Keystone Pricing" in retail. Markup percentages are higher than corresponding profit margin percentages (e.g., 25% margin = 33.3% markup). Pricing should also account for seasonal discounts and returns to maintain health.

Trend & Behavior Analysis

Markup is linear relative to profit (Y-axis) when cost (X-axis) is fixed. Unlike Margin, which is "capped" at 100%, Markup can theoretically be infinite, reflecting how much value you add to a raw material or product.

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