Markup & Margin Calculator
Calculate markup percentages, profit margins, cost of goods, and target selling prices with retail conversion tables.
Pricing & Cost Inputs
Gross Profit: +$30.00 per unit
| Markup % | Equivalent Margin % | Price Multiplier |
|---|---|---|
| 25% | 20.0% | 1.25x |
| 33.3% | 25.0% | 1.33x |
| 50% | 33.3% | 1.50x |
| 66.7% | 40.0% | 1.67x |
| 100% | 50.0% | 2.00x (Keystone) |
| 200% | 66.7% | 3.00x |
Understanding Markup vs Profit Margin
One of the most common mistakes made by new business owners is confusing markup with margin. If an item costs $100 and you mark it up by 25% to sell for $125, your profit is $25. However, $25 divided by your $125 selling price is only a 20% margin—not 25%! Confusing the two leads to underpricing and lower cash flow.
Formulas Reference
Retail & Wholesale Applications
- ✓E-Commerce & Amazon FBA Product Pricing
Determine the exact retail price required to achieve your target 35% or 50% net profit margins after supplier sourcing costs.
- ✓Retail Keystone & Wholesale Pricing
Apply standard 100% keystone markup (doubling cost to arrive at wholesale/retail price) with one click.
- ✓Contractor, Handyman & Freelance Estimates
Mark up materials, parts, and subcontractor fees accurately to ensure profitable job bids.
- ✓Restaurant Menu Costing & Food Margins
Calculate beverage and food cost markups to achieve target 28% to 35% restaurant industry margin standards.
Why Use This Markup Calculator
Bidirectional Reactive Inputs
Update cost, markup, margin, or revenue—the tool instantly solves and aligns all other pricing variables in real time.
Gross Profit Dollar Output
Displays the exact dollar cash profit earned per unit alongside percentage ratios.
Markup to Margin Cheat Sheet
Includes a quick lookup reference table converting standard retail markups (25%, 50%, 100%) into their true profit margins.
One-Click Formatted Copy
Export an itemized pricing breakdown ready to paste into client invoices, supplier quotes, or pricing spreadsheets.
Frequently Asked Questions
What is the difference between markup and profit margin?
Markup is the percentage added to your cost price to determine the selling price: Markup = (Profit / Cost) × 100. Profit margin is the percentage of the selling price that is profit: Margin = (Profit / Selling Price) × 100. Markup is always higher than profit margin for any profitable item.
If I want a 50% profit margin, what markup should I use?
To earn a 50% profit margin, you must use a 100% markup (keystone pricing). For example, if an item costs $50, a 100% markup prices it at $100. The $50 profit divided by the $100 price equals a 50% margin.
What is the formula to calculate selling price from margin?
Selling Price = Cost / (1 - Margin%). For example, if Cost is $60 and desired Margin is 40% (0.40): Price = 60 / (1 - 0.40) = 60 / 0.60 = $100.
What is keystone markup?
Keystone pricing is an established retail rule of thumb where merchandise is priced at double the wholesale cost (a 100% markup), yielding a 50% gross profit margin.
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