Free Markup Calculator: add a markup to a cost price

How markup pricing works

Markup is the percentage you add to your cost to get a selling price. If a product costs 40.00 and you add 50% markup, the price is 60.00 and the profit is 20.00.

The formula: price = cost x (1 + markup). The calculator also shows the margin, because the same sale has both a markup of 50% and a margin of 33.3%. Knowing both keeps your pricing honest.

The reverse mode answers the other question: given a cost and a selling price, what markup did you actually apply? Useful when you are checking a supplier's invoice or a competitor's shelf price.

Picking a markup that works

There is no universal markup. Retailers often use keystone pricing (a 100% markup, which is a 50% margin), while service businesses think in margin instead. What matters is that the final price covers your costs and leaves the profit you planned.

Work backwards from the margin you need. Decide that every sale must keep a 40% margin, then convert: margin of 40% means markup of 66.7%. The numbers here connect exactly, and the margin result in this tool shows you the effect of your markup on every sale.