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Markup is how much you add on top of what an item costs you. Enter your cost and selling price to find your markup, or enter a markup percentage to get the selling price. You can also start from a price and work back to the cost.
How markup is calculated
Markup is the profit on an item shown as a percentage of what it cost you. The calculator uses these standard formulas:
- Profit = selling price − cost
- Markup (%) = profit ÷ cost × 100
- Selling price = cost × (1 + markup ÷ 100)
- Cost = selling price ÷ (1 + markup ÷ 100)
Use your full cost per unit: what you pay for the item, plus packaging and delivery to you. Marketing, rent, platform fees and taxes are not part of this calculation unless you add them to the cost.
Common markups on a $50 cost
The table shows what different markups do to the same $50 item, and the profit margin each one equals.
| Markup | Selling price | Profit | Margin |
|---|---|---|---|
| 20% | $60.00 | $10.00 | 16.67% |
| 25% | $62.50 | $12.50 | 20% |
| 30% | $65.00 | $15.00 | 23.08% |
| 50% | $75.00 | $25.00 | 33.33% |
| 100% | $100.00 | $50.00 | 50% |
Notice that margin is always lower than markup. If you want to price for a target margin instead, use the profit margin calculator.
Worked examples
The examples use dollars, but the maths is the same in any currency.
- Find the markup. An item costs $40 and sells for $55. Profit is $15. Markup is 15 ÷ 40 = 37.5%. The margin is 15 ÷ 55 = 27.27%.
- Price from a markup. An item costs $120 and you apply a 35% markup. Price = 120 × 1.35 = $162. Profit is $42, which is a 25.93% margin.
- Cost from a markup. You sell an item for $90 after a 50% markup. Cost = 90 ÷ 1.5 = $60. Profit is $30, which is a 33.33% margin.
Frequently asked questions
How do I calculate a 25% markup?
Multiply the cost by 1.25. If an item costs $80, a 25% markup gives a selling price of $100 and a profit of $20.
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. The profit is the same, but markup is always the bigger percentage.
Is markup the same as profit percentage?
People often use "profit percentage" to mean markup, but some use it to mean margin. When it matters, say which one you mean, and check whether the percentage is measured against cost or against price.
What is a keystone markup?
Keystone pricing is a traditional retail habit of doubling the wholesale cost. That is a 100% markup, which equals a 50% profit margin.
Should I include tax in the price?
No. Work out markup on prices before VAT or sales tax. Tax you collect from customers is passed on to the tax authority and is not your profit.