Markup Calculator
Turn a unit cost and a markup percentage into a selling price, and see the profit and the gross margin that markup gives you.
Last updated: October 2026
Selling price
60 $
Formula below · 2 sources (investopedia.com, corporatefinanceinstitute.com) · Updated Oct 2026
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About this calculator
Markup is the profit you add on top of cost, expressed as a percentage of cost.
Selling price = cost × (1 + markup ÷ 100) Profit per unit = selling price − cost Gross margin = profit ÷ selling price = markup ÷ (100 + markup) × 100%
With the defaults, a $40 cost with a 50% markup sells for 40 × 1.5 = $60. The profit is $20, which is 50% of the cost but only 33.3% of the selling price, so the gross margin is 33.3%.
Markup and margin are easy to mix up. A 100% markup (doubling the cost, often called keystone pricing) is a 50% margin. To hit a target margin, convert it first: markup = margin ÷ (100 − margin) × 100. A 40% margin needs a 66.7% markup.
Use your full cost per unit: the purchase or production cost plus inbound shipping, packaging and per-order fees such as card processing or marketplace commissions. Leaving any of these out quietly shrinks your real margin. A negative markup means selling below cost.
| Markup | Gross margin | Price on a $40 cost |
|---|---|---|
| 10% | 9.1% | $44.00 |
| 20% | 16.7% | $48.00 |
| 25% | 20.0% | $50.00 |
| 33.3% | 25.0% | $53.33 |
| 50% | 33.3% | $60.00 |
| 75% | 42.9% | $70.00 |
| 100% | 50.0% | $80.00 |
| 150% | 60.0% | $100.00 |
| 200% | 66.7% | $120.00 |
| 300% | 75.0% | $160.00 |
How to use
Enter what one unit costs you and the markup you want to add. Example 1 (defaults): $40 cost, 50% markup. Selling price: $60. Profit $20, margin 33.3%. Example 2: an $8 phone case with a 75% markup. 8 × 1.75 = $14. Profit $6; margin 6 ÷ 14 = 42.9%. Example 3: you need a 40% gross margin on an item that costs $25. Required markup = 40 ÷ 60 × 100 = 66.7%. Enter 25 and 66.67: selling price $41.67, and 16.67 ÷ 41.67 = 40%.
Frequently asked questions
What is the difference between markup and margin?
Markup divides the profit by the cost; margin divides the same profit by the selling price. A $60 price on a $40 cost is a 50% markup and a 33.3% margin. Because the selling price is larger than the cost, margin is always the smaller number.
How do I convert margin to markup?
Markup = margin ÷ (100 − margin) × 100. A 25% margin needs a 33.3% markup, a 50% margin needs 100%, and a 60% margin needs 150%. Going the other way, margin = markup ÷ (100 + markup) × 100.
What is keystone pricing?
Keystone pricing means doubling the wholesale cost: a 100% markup, which gives a 50% gross margin. It is a traditional starting point in some retail sectors, not a rule.
What markup should I use?
Work up from your costs: the markup has to cover overhead, marketing, returns and the profit you need, then check the result against what competitors charge and what customers will pay. Typical markups vary widely between industries.
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