Business · pricing
Markup Calculator
By the Dailycaltor team · formula-verified · last updated July 2026
Turn cost + markup into the right price.
$
Selling price
—
Details
Profit per sale—
Equivalent margin—
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Formula
Selling price = cost × (1 + markup%). The resulting margin = profit ÷ price, which is always lower than the markup — a 50% markup equals a 33.3% margin.
Worked examples
- Cost $40, markup 50% → price $60, profit $20, margin 33.3%.
- Cost $10, markup 100% → price $20, margin 50%.
- For a 25% markup on $80 cost → $100 price.
Common mistakes
- Quoting markup when a client asks for margin (or vice versa) — they are different numbers.
- Marking up only product cost and forgetting per-sale fees and shipping.
- Copying a competitor's price without knowing your own cost base.
Last updated: July 2026. Educational estimates only.
Questions
How do I calculate selling price from markup?
Multiply cost by 1 plus the markup percent: $40 cost at 50% markup is $60.
What markup gives a 50% margin?
100% markup. Margin = markup ÷ (1 + markup).
Is keystone pricing a markup?
Yes — “keystone” means a 100% markup (doubling cost), common in retail.
Markup on cost or on price?
Markup is always on cost. Percent of price is margin.
What markup should I use?
Enough to cover overheads and profit after fees — work backward from the margin your business needs.
Does tax go on top?
Usually yes — sales tax/VAT is added to the selling price at checkout.