Markup Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
To apply a markup, multiply cost by (1 + markup ÷ 100). A $40 item with a 50% markup sells for $60. That gives $20 profit, which is a 33.3% margin on the selling price.
How this calculator works
Markup pricing is simple and common in retail, trades and wholesale: take what something costs you and add a percentage. Contractors often mark up materials, and retailers often use keystone pricing, which is a 100% markup.
The catch is that markup overstates how much of the price you keep. Your accountant and your bank talk in margin, so this calculator shows both.
Markup also has to pay for more than the item. Rent, wages, card fees, returns and the time spent quoting all come out of the difference between cost and price. A business that marks everything up 30% but carries 25% overheads keeps very little, which is why many owners set markups per category: higher on small or slow-moving items, lower on big-ticket items that sell on price.
The formula
- Selling price
- cost × (1 + markup ÷ 100)
- Margin
- markup ÷ (100 + markup) × 100
Worked example
A contractor buys a fixture for $180 and applies a 35% markup, charging $243. Profit is $63, a margin of 25.9%.
Tips
- 01Common conversions: 25% markup = 20% margin, 50% = 33.3%, 100% = 50%.
- 02Use a higher markup on small, low-cost items; the handling cost is similar regardless of price.
- 03Check competitor prices after marking up. The formula gives a floor, not the right price.
Frequently asked questions
How do I calculate markup?
Markup percentage = (selling price − cost) ÷ cost × 100. To set a price, multiply cost by (1 + markup ÷ 100).
What is keystone pricing?
Keystone pricing doubles the wholesale cost, a 100% markup, which equals a 50% margin.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100. A 60% markup is a 37.5% margin.
Is a 100% markup the same as a 100% profit margin?
No. A 100% markup doubles the cost, which is a 50% margin. A 100% margin is impossible, because it would mean the item cost nothing.
What markup should a contractor use?
Many trades mark up materials somewhere between 10% and 50% and build overhead and profit into labor rates. The right number depends on your overheads and local competition.