Markup Calculator
This markup calculator takes your unit cost and a markup percentage and returns the selling price — plus the profit margin that markup actually represents, so the two are never confused again. Markup is the fastest way to price when you think in terms of cost, and the margin translation keeps your pricing honest against fees and targets.
What one unit costs you, fully loaded with materials, labor and inbound freight.
Percentage added ON TOP of cost. 60% markup on $50 cost = $80 price.
Selling price
80
- Unit cost
- 50
- Profit per unit
- 30
- Equivalent profit marginThe same profit as a % of price — always lower than the markup %.
- 37.5%
How it was calculated
- Selling price: $50.00 × 1.60 = $80.00.
- Profit: $50.00 × 60% = $30.00.
- Equivalent margin: $30.00 ÷ $80.00 = 37.5%.
How it works
Selling price = unit cost × (1 + markup). A 60% markup multiplies cost by 1.60.
Profit per unit = unit cost × markup — the dollar amount the markup adds.
Equivalent margin = markup ÷ (1 + markup) × 100. Because the margin divides by the larger price, a 60% markup is only a 37.5% margin.
To convert the other way — from a target margin to the markup you need — use markup = margin ÷ (1 − margin).
Worked examples
$50 cost with 60% markup
Price = 50 × 1.60 = $80. Profit = $30 per unit. Equivalent margin = 60 ÷ 160 = 37.5% — noticeably less than the 60% figure the markup suggests.
$25 cost with 100% markup (keystone)
Price = 25 × 2.00 = $50. Profit = $25. Equivalent margin = 100 ÷ 200 = 50%. Doubling the cost ("keystone pricing") always yields exactly a 50% margin.
How to measure
- Load the true unit cost first: average your last three supplier invoices rather than using the quoted price.
- Decide markup on fully-loaded cost (including inbound freight), not the bare item price.
- If you quote "50% margin" to a partner but priced with 50% markup, you are 16.7 points short — translate before promising.
- Test charm prices after calculating: $79 vs $80 changes the margin by only 0.3 points here.
- Re-check markup whenever costs move; a fixed markup automatically raises the price, which may not be what you want.
Assumptions & limitations
Planning estimate
- Markup is applied to cost only — marketplace fees charged on the selling price are not included.
- The result is a pre-discount price; sales and coupons reduce the realized margin.
- This is a pricing planning estimate, not financial advice.
Frequently asked questions
Price = cost × (1 + markup). With a $50 cost and 60% markup: 50 × 1.60 = $80. The markup percentage itself is (price − cost) ÷ cost × 100.
Markup is profit divided by cost; margin is profit divided by price. A 60% markup equals a 37.5% margin. They are two views of the same profit — markup always looks bigger, which is why margin is the safer number for targets.
Markup = margin ÷ (1 − margin). A 40% margin needs a 66.7% markup (0.40 ÷ 0.60). A 50% margin needs 100% markup — the classic keystone.
It gives a 50% gross margin, which works for categories with high overhead or slow turnover. But with marketplace fees and ad costs, many sellers need more than keystone on the product itself — run your full costs through a margin check before committing.