Markup Calculator
Enter your cost, choose whether you think in markup or margin, and type the percentage. The calculator gives the selling price and converts between markup and margin for you.
Markup and margin pricing formulas
Price from markup = cost × (1 + markup %)
Price from target margin = cost ÷ (1 − margin %)
Markup = margin ÷ (1 − margin) Margin = markup ÷ (1 + markup)
Example
An item costs $40. A 50% markup gives a price of $60 (profit $20, margin 33.3%). If you instead want a 50% margin, the price must be $40 ÷ 0.5 = $80.
Common markups by business type
Retailers often use keystone pricing (100% markup, which doubles the cost), restaurants commonly target food costs around a quarter to a third of the menu price, and service businesses often price from an hourly rate rather than a markup. Your own costs, competitors and customers should set the final number.
Don't forget hidden costs
- Shipping and packaging
- Payment processing fees (often around 3%)
- Marketplace or platform fees
- Returns, damage and discounts
Frequently asked questions
How do I calculate a 30% markup?
Multiply the cost by 1.30. A $50 item with a 30% markup sells for $65.
How do I price for a 30% margin?
Divide the cost by 0.70. A $50 item priced for a 30% margin sells for $71.43.
What is keystone pricing?
Keystone pricing means doubling the wholesale cost — a 100% markup, which equals a 50% margin.