Markup Calculator
Calculate the selling price from a cost and markup %, or work out the markup % from a cost and selling price.
How Markup Calculator works
What is markup?
Markup is the amount added to a cost price to arrive at a selling price, expressed as a percentage of the cost. Formula: Selling Price = Cost × (1 + Markup% ÷ 100). Example: a £50 cost with a 40% markup gives a selling price of £70.
Markup vs margin
Markup % is calculated as profit ÷ cost. Margin % is calculated as profit ÷ selling price. They are related: Margin = Markup ÷ (1 + Markup). A 40% markup corresponds to a 28.6% margin. A 50% margin requires a 100% markup.
Common markup rates
Keystone markup (100%) is common in retail — doubling the cost to set the selling price. Professional services often target 2–3× cost (100–200% markup). Wholesale typically uses lower markups of 20–50%. The right markup depends on your industry, volume, and operating costs.
Frequently asked questions
What is a 50% markup?
A 50% markup means you add 50% of the cost to the cost price. A £100 cost with 50% markup gives a selling price of £150. The gross profit margin on that sale is 33%, not 50%.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). So a 40% markup (0.40) gives a margin of 0.40 ÷ 1.40 = 28.6%. Use this calculator to convert instantly.
What markup do I need for a 30% margin?
Markup = Margin ÷ (1 − Margin). For a 30% margin: 0.30 ÷ 0.70 = 42.9% markup. You need to mark up by 42.9% to achieve a 30% gross margin.
Should I use markup or margin?
Margin is more useful for financial reporting and understanding profitability, since it reflects the percentage of revenue that is profit. Markup is more useful when setting prices from a known cost.
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