The markup calculator turns a unit cost and a markup percentage into a selling price — and shows the equivalent margin, because confusing the two is the most expensive pricing mistake in retail.
The formula
Price = Cost × (1 + Markup%). The equivalent margin is (Price − Cost) ÷ Price — always a smaller number than the markup. A 50% markup is a 33.3% margin; a 100% markup is a 50% margin. Same money, two different denominators.
Worked example
An item costs $60 and you apply a 50% markup: price = 60 × 1.5 = $90, profit $30 per unit, margin 33.3%. If your accountant asks for a 50% margin instead, the price must be $120 — a 100% markup. This is why the calculator shows both.
How to read the result
Standard markups vary wildly by industry — grocery might run 15-30%, apparel 100-150% (“keystone” is doubling), restaurants 300%+ on drinks. Markup covers more than profit: it has to absorb returns, shrinkage and unsold stock. Check the resulting margin against your industry with the profit margin calculator, and confirm the volume maths with the break-even calculator.
What's the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of price. A 50% markup equals a 33% margin — they are never the same number (except at zero).
What is keystone pricing?
Doubling the cost — a 100% markup, or 50% margin. A traditional retail default, though competitive categories often can’t sustain it.
How do I convert a target margin into a markup?
Markup = Margin ÷ (1 − Margin). A 40% target margin needs a 66.7% markup.
Should shipping be in the cost before markup?
Yes — use landed cost (item + freight + duties). Marking up only the item cost quietly erodes the margin you think you’re earning.