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Markup calculator with margin and selling price

Turn a cost and a markup into a selling price, find the markup and margin behind any price, convert margin to markup, and price a product from maker to wholesale to retail. To work from a target margin or a full P&L, use the margin calculator.

Updated October 27, 2026

Your numbers

What one unit costs you to make or buy.

$

Added on top of cost, as a percentage of cost.

%

Runs in your browser. Nothing you type is sent or stored.

Selling price

$60

A 50% markup on a $40 cost.

Profit per unit
$20
Margin
33.33%

Where the price goes

  • Cost$40
  • Profit$20

Markup = profit ÷ cost = $20 ÷ $40 = 50%

Margin = profit ÷ price = $20 ÷ $60 = 33.33%

A 50% markup gives a 33.33% margin. Margin is the smaller number because it divides the same $20 by the price, not the cost.

Quick answer

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is the same profit as a percentage of the selling price. Buy for $50 and sell for $80: the $30 profit is a 60% markup ($30 ÷ $50) and a 37.5% margin ($30 ÷ $80). Selling price = cost × (1 + markup). A 100% markup, called keystone pricing, doubles the cost and gives a 50% margin.

How to use the markup calculator

  1. Pick a mode

    Find price turns a cost and a markup into a selling price, Find markup checks an existing price, Convert switches between margin and markup, Wholesale prices a product from maker to retailer.

  2. Enter your numbers

    Use the cost of one unit and the price before sales tax or VAT. Cents are fine.

  3. Read the result

    See the price, the profit per unit, and the markup and margin side by side.

  4. Share it

    Copy the link to send the exact numbers to a partner or a buyer. Nothing is stored on our side.

How the calculator works

Markup is what you add on top of cost, as a percentage of cost: (price − cost) ÷ cost. Selling price = cost × (1 + markup), so a $40 item with a 50% markup sells for $60.

Margin is the same profit as a percentage of the selling price: (price − cost) ÷ price. The price is larger than the cost, so for any profitable sale margin is the smaller of the two numbers. The $60 item above has a 33.33% margin.

To convert, markup = margin ÷ (1 − margin) and margin = markup ÷ (1 + markup). A 40% margin needs a 66.67% markup; a 100% markup gives a 50% margin.

In Wholesale mode the retailer’s markup applies to your wholesale price, not to your cost, so the two markups multiply: 100% to wholesale and 100% to retail take a $10 cost to a $40 shelf price, a 300% markup overall.

Formula
Selling price = cost × (1 + markup) Markup = (price − cost) ÷ cost × 100 Margin = (price − cost) ÷ price × 100 Markup = margin ÷ (1 − margin) Margin = markup ÷ (1 + markup)

Worked example

  1. A product costs $40. With a 50% markup: $40 × 1.50 = $60.
  2. Profit: $60 − $40 = $20.
  3. Markup: $20 ÷ $40 = 50%. Margin: $20 ÷ $60 = 33.33%.
  4. For a 40% margin instead: markup = 0.40 ÷ (1 − 0.40) = 66.67%, so the price is $40 × 1.6667 = $66.67.
  5. Keystone: a 100% markup sells the $40 product for $80, a 50% margin.

Margin vs markup in one example

Buy a product for $50 and sell it for $80. You make $30. As markup, that $30 is measured against the $50 cost: 60%. As margin, it is measured against the $80 price: 37.5%. Same sale, same profit, two percentages. Mixing them up is the classic pricing mistake: add 40% to cost and you get a 28.57% margin, not 40%.

Margin to markup conversion table

MarginMarkupPrice = cost ×
10%11.11%1.111
20%25%1.25
30%42.86%1.429
40%66.67%1.667
50%100%2
60%150%2.5
70%233.33%3.333
80%400%5
90%900%10

Keystone and tiered pricing

Keystone pricing is a 100% markup: the selling price is double the cost, which is a 50% margin. Tiered pricing stacks markups along the chain. A maker marks up to a wholesale price, then the retailer marks up the wholesale price to the shelf price. Because each markup applies to the price before it, two 100% markups turn a $10 cost into a $40 shelf price.

Markup questions

How do I calculate markup?
Subtract cost from price, divide by cost and multiply by 100. A product that costs $50 and sells for $80 has a $30 profit and a 60% markup: $30 ÷ $50.
What is the markup formula?
Markup = (selling price − cost) ÷ cost × 100. To find the price from a markup, multiply: selling price = cost × (1 + markup). A $40 cost with a 50% markup sells for $60.
Is markup or margin higher?
Markup, for any profitable sale. Both divide the same profit, but markup divides by the cost and margin by the larger selling price. A 50% markup is a 33.33% margin.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). A 25% margin needs a 33.33% markup; a 50% margin needs a 100% markup. To go the other way, margin = markup ÷ (1 + markup).
What markup gives a 30% margin?
42.86%. Divide the margin by 1 minus the margin: 0.30 ÷ 0.70 = 0.4286. On a $70 cost that is a $100 price.
What is keystone pricing?
Setting the selling price at twice the cost, a 100% markup. It gives a 50% margin: a product that costs $25 sells for $50.
How do I calculate a wholesale price?
Multiply your cost by 1 plus your markup to wholesale. A $10 cost with a 100% markup is a $20 wholesale price. The retailer then applies its own markup to the $20, not to your $10.
Should I price with markup or margin?
Set prices with markup, because you know the cost when you price. Report profitability with margin, because revenue and profit are what accounts and investors compare. The calculator shows both for every price.

Related

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Cite this tool

Free to link and quote. Use this reference:

SaaSCity, "Markup Calculator", October 27, 2026. https://saascity.io/free-tools/markup-calculator

Sources

  • OpenStax, Contemporary Mathematics, 6.2: discounts, markups and sales tax
  • OpenStax, Principles of Marketing, 18.3: retailing strategy decisions (markup and keystone pricing)
  • OpenStax, Principles of Accounting, Volume 1, 6.6: the gross profit margin ratio

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