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Markup Calculator

Calculate markup percentage, convert markup to margin, and find the right selling price from cost

Markup Calculator
Selling price$40.00
Profit per unit$20.00
Markup on cost100%
Equivalent margin on revenue50.0%

Key insight: A 100% markup ≠ a 100% margin. Your 100% markup equals a 50.0% profit margin.

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<p>Free <a href="https://sellertoolsonline.com/markup-calculator">Markup Calculator</a> by SellerTools Online</p>
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How to Calculate Markup, Margin & Selling Price

This Markup Calculator is for product sellers, retailers, wholesalers, and small businesses that need to price items from cost instead of guessing. Enter your product cost and markup percentage to calculate selling price, profit per unit, and the matching profit margin. You can also work backward from selling price to check your markup percentage. Use it when comparing keystone pricing, retail markup, wholesale-to-retail price, handmade product pricing, or ecommerce products where marketplace fees and shipping can make a markup look healthier than the real margin. It is especially useful when a simple product price calculator does not explain the difference between markup and margin, or when you need to show a buyer, supplier, or internal team exactly how cost turns into selling price.

Markup Calculation Examples

If you bought a product for $20 and want a 50% markup, the selling price is $30 and profit is $10.

If cost is $20 and markup is 100%, the selling price is $40. That is a 50% margin, which shows why markup and margin are not the same.

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Markup Formula and Pricing Steps

Markup and margin are two of the most commonly confused pricing metrics. Use these steps to calculate markup percentage, selling price, profit, and the margin equivalent from the same cost input before you publish a price, quote a wholesale buyer, or compare a product against competitor prices.

Step 1 — Enter product cost

Start with the total cost per unit. For ecommerce sellers, include product cost, packaging, inbound freight, and any other cost that must be recovered before profit. If you use different suppliers or shipping methods, calculate markup from the landed cost that reflects the real order.

Step 2 — Enter markup percentage

Enter the markup you want to add on top of cost. A 100% markup means the selling price is double the cost, while a 50% markup adds half of the cost again. Retailers often call 100% markup keystone pricing, but ecommerce sellers should still check fees and shipping before assuming it creates enough net margin.

Step 3 — Calculate selling price

Use the selling price result as your starting point before marketplace fees, discounts, or shipping adjustments. This helps you avoid listing products below your required cost-plus price.

Step 4 — Review profit per unit

Check the profit amount so the result feels concrete, not just percentage-based. This is especially useful when comparing low-cost products with different markup percentages.

Step 5 — Compare markup and margin

Markup is based on cost, while margin is based on selling price. The calculator shows both so you can avoid assuming that a 50% markup equals a 50% profit margin.

Step 6 — Use markup before pricing products

Use the result as a pricing floor, then compare it with competitor prices, marketplace fees, and your target profit margin before publishing a final product price. If the market price is lower than your markup price, revisit cost, packaging, shipping, or fee assumptions before reducing margin.

💡 Pro tips
  • Keystone markup (100%) = 50% margin — the standard starting point for retail
  • Amazon FBA needs 150–200% markup on landed cost to achieve 20–30% net margin after fees
  • When giving wholesale prices to retailers, specify which markup you mean to avoid confusion
  • Higher markup doesn't always mean more profit — sales velocity matters too

Frequently Asked Questions

QWhat is markup?

Markup is the amount added on top of cost to set a selling price. If a product costs $20 and you sell it for $30, the $10 difference is markup. Markup percentage is calculated from cost, not from the final selling price.

QHow do I calculate markup percentage?

Use this formula: Markup % = (Selling Price - Cost) ÷ Cost × 100. For example, if cost is $20 and selling price is $30, the markup is ($30 - $20) ÷ $20 × 100 = 50%.

QWhat is the difference between markup and margin?

Markup is based on cost, while margin is based on selling price. A 50% markup on a $20 cost creates a $30 selling price and a 33.3% margin. That is why markup and margin should not be used interchangeably.

QHow do I convert markup to margin?

Use this formula: Margin % = Markup % ÷ (100 + Markup %) × 100. A 100% markup equals a 50% margin, and a 50% markup equals a 33.3% margin. The calculator shows the conversion automatically.

QHow do I calculate selling price from cost and markup?

Use this formula: Selling Price = Cost × (1 + Markup %). If cost is $20 and markup is 75%, the selling price is $20 × 1.75 = $35 before fees, discounts, or shipping adjustments.

QWhat markup should product sellers use?

There is no single correct markup. Retail sellers often start with keystone pricing, or a 100% markup, but ecommerce sellers also need to account for marketplace fees, shipping, ad costs, returns, and competitor pricing before choosing a final price. A product with high shipping cost or paid ads may need more markup than a simple retail rule suggests.

Related Guide

Learn how landed cost, markup, margin, fees, and shipping affect product pricing in our product pricing guide.

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