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Markup and margin calculator

Calculate selling price from cost, or find your markup and margin percentages from known prices. Switch modes to solve either direction — free, no signup.

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Calculate markup and margin

Calculate selling price from cost, or find markup and margin from known prices.

$

Your cost per unit

%

Markup percentage on cost

Selling price

$75.00

Cost

$50.00

Profit

$25.00

Markup

50.0%

of cost

Margin

33.3%

of price

Summary: For every $50.00 you spend, you earn $25.00 profit. That's a 50.0% markup on your cost, or a 33.3% margin on the selling price.

Markup vs margin: the quick reference

Markup is a percentage of cost; margin is a percentage of selling price. For the same dollar profit, the markup percentage is always higher than the margin percentage — which is why the two are so easy to confuse.

A 15% markup equals a 13.0% margin (multiply cost by 1.15). 25% markup is a 20.0% margin (×1.25). 33.3% markup is a 25.0% margin (×1.33). 50% markup is a 33.3% margin (×1.50). 100% markup is a 50.0% margin (×2.00 — keystone pricing). 150% markup is a 60.0% margin (×2.50). 200% markup is a 66.7% margin (×3.00).

The formulas

Markup = (Price − Cost) ÷ Cost × 100. Margin = (Price − Cost) ÷ Price × 100. The only difference is the denominator: markup divides profit by cost, margin divides profit by price.

To convert between them: Margin = Markup ÷ (100 + Markup) × 100, and Markup = Margin ÷ (100 − Margin) × 100. To price from a target: Selling Price = Cost × (1 + Markup ÷ 100), or Selling Price = Cost ÷ (1 − Margin ÷ 100).

Keystone pricing explained

Keystone pricing means a 100% markup — you double your cost. A $50 cost becomes a $100 price. Because the denominator flips, that same price is a 50% margin.

Keystone is a common starting point in retail industries like apparel and home goods, where it roughly covers overhead, shrinkage, and markdowns while leaving profit. It is a rule of thumb, not a rule: high-turnover staples often sell below keystone, while slow-moving specialty items carry more.

Frequently asked questions

How do I calculate markup from cost and price?
Markup = ((Selling Price - Cost) / Cost) × 100. If an item costs $40 and sells for $60, the markup is (($60 - $40) / $40) × 100 = 50%.
How do I calculate margin from cost and price?
Margin = ((Selling Price - Cost) / Selling Price) × 100. If an item costs $40 and sells for $60, the margin is (($60 - $40) / $60) × 100 = 33.3%.
How do I calculate selling price from cost and markup?
Selling Price = Cost × (1 + Markup / 100). If an item costs $40 and you want a 50% markup, the selling price is $40 × 1.50 = $60.
How do I calculate selling price from cost and margin?
Selling Price = Cost / (1 - Margin / 100). If an item costs $40 and you want a 33.3% margin, the selling price is $40 / 0.667 = $60.
What is the difference between markup and margin?
Markup is calculated as a percentage of cost; margin is calculated as a percentage of selling price. For the same dollar profit, markup percentage is always higher than margin percentage.
What is keystone pricing?
Keystone pricing means a 100% markup (doubling your cost). A $50 cost becomes a $100 price. This equals a 50% margin. Common in retail industries like apparel and home goods.

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