SellersCalc

Pricing math

Markup Calculator

Cost-plus pricing done right — and translated into the margin the markup actually produces.

Selling price = cost × (1 + markup%). A product costing $20 with a 50% markup sells for $30, earning $10 profit — but note that is only a 33.3% margin, because margin measures profit against the price, not the cost. Retailers often talk markup while accountants talk margin; confusing the two under-prices products. Enter your cost and intended markup to see the price, the profit, and the true margin it yields.

Markup Calculator — your numbers

Selling price

$30.00

Profit per unit

$10.00

Resulting margin

33.3%

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Classic keystone (100% markup)

Product cost $20.00
Markup 100%
Selling price $40.00
Profit per unit $20.00
Resulting margin 50.0%

Doubling cost — the traditional retail default — yields a 50% margin.

Modest 30% markup

Product cost $45.00
Markup 30%
Selling price $58.50
Profit per unit $13.50
Resulting margin 23.1%

A 30% markup is only a 23% margin — often too thin once ads join the bill.

Frequently asked questions

What markup should I use for my products?

Common e-commerce practice is 80–150% markup (roughly 45–60% margin) for owned-brand physical goods, and keystone (100% markup) is the traditional retail baseline. Work backwards from the margin you need: to keep 50% of the price, you need a 100% markup.

Is a 50% markup the same as a 50% margin?

No — a 50% markup is a 33.3% margin. Markup is profit over cost; margin is profit over price. Because price is always larger than cost, a markup percentage always sounds bigger than the margin it produces.

How do I convert markup to margin?

Margin% = markup ÷ (100 + markup) × 100. So 25% markup → 20% margin, 50% → 33.3%, 100% → 50%, 300% → 75%. Going the other way: markup% = margin ÷ (100 − margin) × 100.

Should shipping and fees be part of the cost before markup?

Yes — mark up your landed, fully-loaded unit cost (product + freight + duty + payment/marketplace fees where predictable). Marking up the bare factory price quietly transfers those costs out of your profit.

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Part of the Pricing & Margins collection.