Free tool
Markup calculator
Add a markup to your cost to get a selling price, or enter both to find the markup you are charging. The matching profit margin updates alongside.
- Free
- No account needed
- Markup and margin
Selling price
$0
Markup formula
Markup = (price minus cost) divided by cost, times 100. Price = cost times (1 plus markup).
Markup is measured against cost, so it is always bigger than margin for the same sale. A $20.00 item sold for $30.00 carries a 50% markup but a 33.33% margin.
Markup to margin table
| Markup | Equals margin | Price for a $10 item |
|---|---|---|
| 10% | 9.09% | $11.00 |
| 25% | 20% | $12.50 |
| 33.33% | 25% | $13.33 |
| 50% | 33.33% | $15.00 |
| 75% | 42.86% | $17.50 |
| 100% | 50% | $20.00 |
| 150% | 60% | $25.00 |
| 200% | 66.67% | $30.00 |
Choosing a markup that survives fees
Every fee you pay as a share of the price comes out of your markup. If a marketplace takes 15% and payment processing 3%, an item marked up 50% (a 33% margin) is left with about 15% before shipping and advertising. Work out the margin you need to keep after fees with the profit margin calculator, then convert it to a markup with the table above.
Pricing for US customers?
Form a US LLC for $399 with all state fees included and sell as a US business, paid in dollars.
Frequently asked questions
How do I calculate markup?
Divide profit by cost and multiply by 100. An item bought for $20.00 and sold for $30.00 has $10.00 profit, a 50% markup.
How do I calculate a selling price from markup?
Multiply cost by one plus the markup. A $20.00 item with a 50% markup sells for $20.00 x 1.5 = $30.00.
Is a 100% markup a 100% margin?
No. A 100% markup doubles the cost: a $10 item sells for $20, which is a 50% margin. A 100% margin is impossible, because it would mean the item cost nothing.
What markup do retailers use?
Keystone pricing, a 100% markup that doubles the wholesale cost, is a common starting point in retail. Online sellers paying marketplace fees, payment processing and shipping often need more, because those costs come out of the markup.
Should I price on markup or margin?
Markup is easier to apply to a cost; margin is easier to compare with your expenses and targets, because fees and costs are usually quoted as a share of the price. Many businesses set prices by markup and report on margin. This calculator shows both.
More free tools
Profit Margin Calculator
Margin from cost and price
Open toolBreak-Even Calculator
Units to cover your costs
Open toolROAS Calculator
Are your ads paying for themselves
Open toolEtsy Fee Calculator
Every Etsy fee and what you keep
Open tooleBay Fee Calculator
eBay fees and profit on any sale
Open tool