Keystone pricing – a 100% markup (doubling the cost) – is a traditional retail rule. Remember the markup must cover overhead, not just the product cost.
How to use the Markup Calculator
- Cost
- Markup
- Every result field is editable: type into Selling price and Markup plus every other field update to match.
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the cost and markup percentage – or type a selling price into the result.
Tips
- Know the difference between margin (profit ÷ price) and markup (profit ÷ cost).
- Apply successive discounts one after another – they do not simply add up.
- Check whether prices already include sales tax or VAT.
- Round prices only at the very end of the calculation.
Common mistakes to avoid
- Adding discount percentages together.
- Pricing from a target margin using the markup formula.
- Forgetting payment-processing and shipping fees.
Inputs explained
| Field | What to enter |
|---|---|
| Cost | Amount in your currency |
| Markup | In % |
What each result means
- Selling price = [Cost]×(1 + [Markup]÷100)
- Profit = [Selling price] – [Cost]
- Margin = ([Selling price] – [Cost])÷[Selling price]×100
Example values
How the main result changes when Markup changes and everything else stays at the example values above:
| Markup (%) | Selling price |
|---|---|
| 30 | 65 |
| 45 | 72.5 |
| 60 | 80 |
| 75 | 87.5 |
| 90 | 95 |
| 120 | 110 |
Formula
Price = cost × (1 + markup)Markup = (price − cost) ÷ cost × 100Margin = (price − cost) ÷ price × 100Worked example
Inputs — Cost: $50; Markup: 60 %.
Results — Selling price = $80.00; Profit = $30.00; Margin = 37.5 %.
Frequently asked questions
How do I calculate markup?
(Price − cost) ÷ cost × 100.
What markup should I use?
It depends on the industry – 50–100% in retail is common.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup).
What formula does the Markup Calculator use?
Price = cost × (1 + markup).