Set a selling price from cost and desired markup — with the resulting margin shown.
Set a selling price from cost and desired markup — with the resulting margin shown.
Enter values above and click Calculate — results will appear here with the formula explained.
Cost-plus pricing multiplies your cost by one-plus the markup to land on a shelf price. The subtlety is what that markup becomes once expressed as margin: a 50% markup produces only a 33.3% margin, because the denominator grows to include the profit itself.
Keystone pricing — doubling cost — is a 100% markup but just a 50% margin. Retailers use both vocabularies interchangeably and sloppily, so always confirm which one a negotiation means.
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Cost-plus pricing multiplies your cost by one-plus the markup to land on a shelf price. The subtlety is what that markup becomes once expressed as margin: a 50% markup produces only a 33.3% margin, because the denominator grows to include the profit itself. Formula: price = cost × (1 + markup%); resulting margin = markup% ÷ (100 + markup%) × 100
Markup Calculator: Set a selling price from cost and desired markup — with the resulting margin shown. Formula: price = cost × (1 + markup%). Example: A $40 item marked up 50% prices at $60.
Set a selling price from cost and desired markup — with the resulting margin shown. Formula: price = cost × (1 + markup%); resulting margin = markup% ÷ (100 + markup%) × 100
| Field | What to enter |
|---|---|
| Unit cost ($) | e.g. 40 |
| Markup percentage (%) | e.g. 50 |
All fields use the exact formulas shown below — results include step-by-step breakdowns you can verify by hand.
Cost-plus pricing multiplies your cost by one-plus the markup to land on a shelf price. The subtlety is what that markup becomes once expressed as margin: a 50% markup produces only a 33.3% margin, because the denominator grows to include the profit itself.
Keystone pricing — doubling cost — is a 100% markup but just a 50% margin. Retailers use both vocabularies interchangeably and sloppily, so always confirm which one a negotiation means.
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A $40 item marked up 50% prices at $60. Profit is $20 per unit, which represents a 33.3% margin on the $60 price.
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