Markup Calculator
Enter cost and selling price to find the markup percentage — and the gross margin it works out to, side by side.
On $100.00 of revenue with $60.00 of cost, the profit is $40.00. That's a markup of 66.67% — and an equivalent gross margin of 40.00%.
Results update as you type.
Formula
Markup is profit as a percentage of cost:
markup% = (revenue − cost) / cost × 100.
To go the other way — set a price from a target markup —
price = cost × (1 + markup%/100).
The equivalent gross margin is always smaller because it divides by the larger number:
margin% = markup% / (1 + markup%/100).
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Frequently asked questions
What is markup vs keystone vs MSRP?▾
Markup is the percentage on top of cost. 'Keystone' is the retail tradition of doubling cost (100% markup, 50% margin). MSRP — manufacturer's suggested retail price — is what the manufacturer recommends you sell at; how it relates to your cost is the markup you're getting. A 100% markup ('keystone') and a 50% margin describe exactly the same price.
Should I price by markup or by margin?▾
Markup is easier when you know your cost and want to set a price ('cost plus 40%'). Margin is easier when you know your target margin and need to back into a price. Mixing them is the classic small-business pricing mistake: someone who 'wants 30% margin' but 'marks up by 30%' has actually set a 23% margin and left money on the table.
How do I price for a target markup?▾
price = cost × (1 + markup%/100). $60 cost × 1.50 = $90 price (50% markup). This calculator does the reverse — cost and price in, markup out — but the algebra is the same.
Why is markup always higher than margin?▾
Markup uses cost as the denominator; margin uses revenue. Cost is always smaller (on a profitable product), so dividing by it gives a bigger number. Conversion: margin% = markup% / (1 + markup%/100). 50% markup → 33.33% margin; 100% markup → 50% margin; 25% markup → 20% margin.
Does this include sales tax?▾
No — use pre-tax figures for both cost and selling price. US sales tax is a pass-through to the state, not part of revenue. If you include the tax-inclusive consumer price as revenue but a pre-tax wholesale cost, you'll compute an inflated markup that includes the state's tax revenue.