How to use the markup calculator
- 1Choose whether you want a selling price or want to find the markup on a price you already charge.
- 2Enter your cost for one unit, including inbound shipping and packaging if you pay them per item.
- 3Enter the markup percentage you want, or your current selling price.
- 4Read the selling price or markup, along with the profit per unit and the margin it gives you.
- 5Try a few markups to see how each one changes your margin before you set a price.
Markup to margin chart
Markup is profit as a share of cost; margin is profit as a share of price. The same sale always has a lower margin than markup. Use this chart to convert between them:
10% markup = 9.1% margin · 20% markup = 16.7% margin · 25% markup = 20% margin · 30% markup = 23.1% margin · 33.3% markup = 25% margin · 40% markup = 28.6% margin · 50% markup = 33.3% margin · 60% markup = 37.5% margin · 75% markup = 42.9% margin · 100% markup = 50% margin · 150% markup = 60% margin · 200% markup = 66.7% margin · 300% markup = 75% margin.
To go the other way, from a target margin to the markup you need, divide the margin by one minus the margin. A 40% margin needs a 66.7% markup.
Margin % = Markup % ÷ (100 + Markup %) × 100 Markup % = Margin % ÷ (100 − Margin %) × 100
What markup means
Markup is the amount you add on top of cost, written as a share of that cost. If an item costs you $24 and you add 60%, you add $14.40 and sell it for $38.40.
Many wholesalers and trades price this way, often called cost-plus pricing, because it is quick: you only need the cost and one percentage. The risk is that it ignores what customers will pay and what competitors charge, so treat the result as a starting point.
Selling price = Cost × (1 + Markup % ÷ 100)
Finding the markup on a price you already charge
Subtract the cost from the price to get the profit, then divide by the cost. A $24 item sold for $38.40 has $14.40 of profit, and $14.40 ÷ $24 is a 60% markup.
Markup % = (Price − Cost) ÷ Cost × 100
Why your margin is always lower than your markup
Margin divides the same profit by the price instead of the cost. Because the price is bigger than the cost, the margin is always the smaller number. A 60% markup gives a 37.5% margin, and a 100% markup (doubling the cost, sometimes called keystone pricing) gives a 50% margin.
This matters when someone tells you a target. If your accountant or a buyer says "we need 40%", ask whether they mean margin or markup. Adding 40% to cost only gives a 28.6% margin.
Margin % = Markup % ÷ (100 + Markup %) × 100
Worked example
A candle maker spends $24 on wax, wicks, jars and labels for one candle and wants to add a 60% markup.
| Cost | $24.00 |
| Markup | 60% |
| Selling price | $38.40 |
| Profit per candle | $14.40 |
| Margin | 37.5% |
The candle sells for $38.40 and keeps $14.40 per sale. That 60% markup is a 37.5% margin on the selling price.