Free tool
Markup and Margin Calculator
Enter your cost and one other number, a selling price, a target margin or a markup, and see the rest. Built for setting wholesale and retail prices without the usual margin and markup mix-up.
What you know
Cost and
What one unit costs you: product, plus inbound freight and packaging if you want the full picture.
Selling price
$100.00
$40.00 profit on $60.00 cost
Margin
40%
Profit ÷ price
Markup
66.7%
Profit ÷ cost
| Margin | Markup needed |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 33.3% | 50% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
| 70% | 233.3% |
| 80% | 400% |
The formulas
Profit = Price minus Cost
Margin = Profit ÷ Price
Markup = Profit ÷ Cost
Price from margin = Cost ÷ (1 minus Margin)
Price from markup = Cost × (1 + Markup)
Pricing is only half of it. See what your ads have to return at that margin with the ROAS calculator, or set up wholesale pricing on Shopify.
Markup and margin FAQs
- What is the difference between margin and markup?
- Both start from the same profit. Margin divides it by the selling price; markup divides it by the cost. A product that costs $60 and sells for $100 makes $40, which is a 40% margin and a 66.7% markup. Margin can never reach 100%, while markup has no ceiling.
- How do you calculate markup?
- Take the selling price minus the cost, divide by the cost, and multiply by 100. A $60 cost sold at $90 is a $30 profit, and $30 ÷ $60 is a 50% markup. To price from a markup, multiply the cost by one plus the markup: $60 × 1.5 = $90.
- How do you set a price from a target margin?
- Divide the cost by one minus the margin. For a 40% margin on a $60 cost, $60 ÷ 0.6 = $100. Adding 40% to the cost instead gives $84, which is only a 28.6% margin. That mix-up is the most common pricing mistake this calculator catches.
- What is keystone pricing?
- Keystone pricing doubles the cost: a 100% markup, which is a 50% margin. A retailer that buys at $25 wholesale and sells at $50 is pricing at keystone. It is a common starting point in retail, then adjusted for the category and the competition.
- How do wholesale and retail prices fit together?
- Each step adds its own margin. If an item costs a manufacturer $20 to make and it sells to retailers at $40, the manufacturer makes a 50% margin. A retailer who then prices at keystone sells it for $80, also a 50% margin on their cost. Work each step out separately, from that step’s own cost.
- Is this markup calculator free?
- Yes. It runs in your browser, needs no sign-up and does not store what you enter.
Prices that hold up across every channel
We set up Shopify B2B so trade buyers see their own price lists while your retail prices stay on the public store.
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