Markup Calculator: Selling Price, Markup % and Margin
A free markup calculator for online sellers. Get the selling price from your cost and markup, find the markup percentage from cost and price, or convert any markup to the margin it gives you. Exact to the cent, with optional VAT.
Enter your cost and a markup percentage. You get the selling price and the margin it leaves.
Selling price
$60.00
Rounded to the cent
Margin
33.33%
Profit as a % of the selling price
- Profit per unit
- $20.00
How to calculate markup
Markup is the profit you add on top of the cost, as a percentage of that cost. Subtract the cost from the selling price, divide by the cost and multiply by 100. A product that costs $40 and sells for $60 has a $20 profit and a 50% markup.
To set a price from a markup, multiply the cost by (1 + markup). A 50% markup on $40 is $40 x 1.5 = $60. The calculator rounds the price to the cent and shows the margin that price leaves you.
Markup is always higher than margin for the same product, because it divides the same profit by the smaller number. A 50% markup is a 33.33% margin, and you need a 100% markup to reach a 50% margin.
Margin vs markup
Margin and markup both start from the same profit: selling price minus cost. They differ in what you divide that profit by. That is why the same product has a 60% margin and a 150% markup at once.
Margin
(price - cost) / price x 100Profit as a share of the selling price. Accountants, marketplaces and pricing reports use margin. It can never reach 100%.
Markup
(price - cost) / cost x 100Profit as a share of the cost. Buyers often price with markup because it starts from the purchase price. It has no upper limit.
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 60% | 37.5% |
| 75% | 42.86% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.67% |
| 300% | 75% |
Worked examples
1. Price from a markup
A lamp costs you $25. With a 60% markup the price is 25 x 1.6 = $40.00. The profit is $15 and the margin 15 / 40 = 37.5%.
2. Markup from cost and price
You buy a product for $25 and sell it for $35. The profit is $10, so the markup is 10 / 25 = 40% and the margin 10 / 35 = 28.57%.
3. Keystone pricing
Keystone pricing means a 100% markup: a $12 cost becomes a $24 price. That is a 50% margin, not 100%, which is why a keystone price can still be thin after shipping and fees.
When to use markup and when to use margin
Markup is handy when you price from the purchase price: take the cost, add your percentage, done. Wholesalers and buyers often think in markup, and keystone pricing (double the cost) is a markup rule.
Margin is better for targets and reports, because it shows what share of revenue you keep. A good habit is to set your target as a margin and convert it to a markup for pricing: markup = margin / (100 - margin) x 100. The Markup to margin mode and the table above do the conversion both ways.
Set prices from cost for your whole catalog
This calculator handles one product. In WISEPIM you store a cost price on every product, and the Pricing & Margins rules work out channel prices from it automatically.
- Cost plus markup or cost plus margin rules, per channel and with values per brand, supplier, family or category.
- A minimum margin safeguard, so no exported price drops below the floor you set.
- Rounding to whole amounts or .99 and .95 price endings.
Embed this calculator
Add this free calculator to your own website or blog. Paste the code where you want it to show. It works on any page that accepts HTML.
<iframe src="https://wisepim.com/embed/tools/markup-calculator?lang=en" title="Markup calculator" width="100%" height="720" loading="lazy" style="border:0;max-width:760px"></iframe>
<p style="font-size:13px">Powered by <a href="https://wisepim.com/tools/markup-calculator">WISEPIM</a></p>Free to use. Keep the Powered by WISEPIM link visible below the calculator.
You priced one product.
WISEPIM stores the cost price of every product, and its Pricing & Margins rules set channel prices from cost plus markup or cost plus margin, with a minimum margin as a safeguard.
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Frequently asked questions
How do I calculate markup?
Markup = (selling price - cost) / cost x 100. Subtract the cost from the selling price, divide by the cost and multiply by 100. A product that costs $40 and sells for $60 has a $20 profit and a 50% markup.
How do I calculate the selling price from a markup?
Multiply the cost by (1 + markup as a decimal). A 50% markup on a $40 cost is $40 x 1.5 = $60. A 100% markup doubles the cost: $40 becomes $80. The calculator rounds the price to the cent and shows the margin you end up with.
How do I convert markup to margin?
Margin = markup / (100 + markup) x 100. A 25% markup is a 20% margin, 50% is 33.33%, 100% is 50% and 150% is 60%. The other way round, markup = margin / (100 - margin) x 100.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a $40 cost gives a $60 price and only a 33.33% margin. To reach a 50% margin you need a 100% markup, a price of $80. Mixing them up is the most common pricing mistake, because the margin is always lower than the markup.
Should the markup include VAT?
Calculate the markup on prices without VAT, because VAT is not your revenue. Turn on the VAT option to see the consumer price with VAT added on top, for example 21% in the Netherlands or 19% in Germany.
What markup should I use?
Work back from the margin you need after all costs. If shipping, fees, ads and returns take 20% of the price and you want 15% left, you need a 35% gross margin, which is a markup of about 54%. Use the convert mode to check.
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