Pricing & profit tools · 02

Markup Calculator

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Free tool - no sign-up - runs in your browser

Turn a cost and a price into markup and margin, or work backwards from the markup or margin you want. Both percentages describe the same profit measured against different bases, and mixing them up is one of the most common pricing mistakes.

Markup calculator

Filled with example values. Replace them with your own.

Currency and period
What do you know?
Units sold (optional)

Shows total profit for that many units.

Markup on product cost

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Margin

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Cost
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Selling price
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Profit per unit
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Gross profit on these units
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How the price splits

Cost – Profit –

Set a price with these numbers Compare scenarios with these numbers
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    How to use it

    1. Choose the two numbers you already know: for example a cost and the markup you use, or a price and the margin you need.
    2. Type them in. The calculator fills in the rest - price or cost, profit per unit, markup and margin - as you type.
    3. Optionally enter a number of units to see the gross profit on all of them.
    4. Need fees, VAT and fixed costs too? Use the product pricing calculator, which builds on the same numbers.

    The formulas

    Markup measures profit against cost. Margin measures the same profit against the selling price.

    • Markup = (price - cost) / cost
    • Margin = (price - cost) / price
    • Price = cost x (1 + markup) = cost / (1 - margin)
    • Margin = markup / (1 + markup) Markup = margin / (1 - margin)

    Margin can never reach 100%, because that would need a cost of zero. Markup has no upper limit: a 300% markup is a 75% margin.

    Worked example

    A product costs $60 and sells for $100. The profit is $40 per unit.

    • Markup = $40 / $60 = 66.7%
    • Margin = $40 / $100 = 40%
    • The common mistake: someone who wants a 40% margin adds 40% to cost. $60 x 1.4 = $84, which is only a 28.6% margin - $16 less profit on every unit than they intended.
    Markup to margin conversion
    Markup Margin
    10% 9.1%
    20% 16.7%
    25% 20.0%
    30% 23.1%
    40% 28.6%
    50% 33.3%
    60% 37.5%
    75% 42.9%
    100% 50.0%
    150% 60.0%
    200% 66.7%
    300% 75.0%

    Questions

    What is the difference between markup and margin?

    Both start from the same profit per unit. Markup divides it by the cost; margin divides it by the selling price. Because the price is always larger than the cost, the margin percentage is always smaller than the markup percentage for the same product.

    What is keystone pricing?

    Doubling the cost to set the price - a 100% markup, which is a 50% margin. It is a common retail starting point, not a rule.

    Should shipping and fees be part of cost here?

    This calculator uses whatever cost you enter. Many businesses quote markup on product cost only, which makes it look larger. To see what you keep after shipping, packaging and payment fees, use the product pricing calculator.

    Can margin be negative?

    Yes. When the price is below the cost, both markup and margin are negative: every unit sold loses money.

    Assumptions and limits

    • Cost means the cost you enter. The calculator does not add fees, VAT or overheads.
    • Results are per unit. Totals assume every unit sells at the same price and cost.

    Sources and method

    Reviewed by The Business Radar editorial team Last reviewed October 2026

    These tools model your own inputs with standard formulas. They are for planning and education, not financial, tax or legal advice.

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