Markup calculator
Enter your cost and markup percentage to get the selling price, profit, and the resulting profit margin. Price = cost × (1 + markup ÷ 100).
Selling price: 60
Profit: 20
Margin: 33.3333%
Formula
price = cost × (1 + markup% ÷ 100); margin % = profit ÷ price × 100
Example: Cost 40 with 50% markup: price 60, profit 20, margin 33.3%.
Pricing products without mixing up markup and margin
Markup is calculated on cost; margin is calculated on the selling price. A 50% markup on a 40 cost gives a 60 price — but the margin on that sale is 33.3%, not 50%. Mixing the two up is one of the most common small-business pricing mistakes, and it always errs in the unprofitable direction.
Typical reference points: “keystone” retail pricing is a 100% markup (doubling cost, 50% margin), while grocery staples often run on markups under 20%. The calculator shows both numbers so you can quote whichever one the conversation needs.
Markup vs the margin it produces
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
| 200% | 66.7% |
| 300% | 75% |