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Pricing & profit / Markup Calculator

Markup Calculator

Add a markup to your cost to get a selling price, or enter both to see the markup percentage and the margin it gives you.
$

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%

Enter a number from 0 to 1000%

Sell it for
$40.00
$15.00profit
60.0%markup
37.5%margin
$0price $40.00
  • Cost
  • Markup
Cost$25.00
Markup added · 60.0% of cost+$15.00
Selling price$40.00

A 60.0% markup is only a 37.5% margin, because margin divides the same profit by the price.

See breakdown

How the markup calculation works

  1. Markup is profit divided by cost

    Subtract the cost from the price, then divide by the cost. A $25 item sold for $40 has $15 profit and a 60% markup.

  2. Price is cost times (1 + markup)

    For a 60% markup on a $25 cost: $25 × 1.60 = $40.

  3. Margin is always lower than markup

    Margin divides the same profit by the price instead of the cost. The $15 profit on a $40 price is a 37.5% margin.

  4. A 100% markup doubles the cost

    Doubling the cost is a 100% markup and a 50% margin. Keystone pricing in retail works this way.

Worked example. An item costs $25 and you add a 60% markup. The markup is $15, so the selling price is $40. Your margin on that price is $15 ÷ $40 = 37.5%.

Markup FAQ

How do I calculate a markup?

Multiply the cost by the markup percentage and add it to the cost. A 60% markup on $25 is $15, so the price is $40.

How do I calculate markup percentage from cost and price?

Take the price minus the cost, divide by the cost and multiply by 100. ($40 − $25) ÷ $25 = 60%.

What is the formula for markup percentage?

Markup % = (selling price − cost) ÷ cost × 100. Selling price = cost × (1 + markup %).

Is a 50% markup the same as a 50% margin?

No. A 50% markup on a $20 cost gives a $30 price and a 33.3% margin. A 50% margin needs a 100% markup.

What markup should a small business use?

It depends on your overhead and trade. For US listed retailers in January 2026, the average gross margin was 33.2% in general retail, about a 50% markup, and 26.3% in grocery, about a 36% markup (NYU Stern, Damodaran). Small shops often need more to cover rent, wages and fees.

What is keystone pricing?

Doubling the cost to set the price: a 100% markup, which is a 50% margin. A $25 item sells for $50. It is a common starting point in retail, adjusted for competition and how fast the item sells.

Sources: NYU Stern (Damodaran): Margins by sector, US, January 2026

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