How to use the markup calculator
- Price from markup: enter your cost and the markup you add, and get the selling price, profit and margin.
- Find markup: enter cost and current price to see the markup you're charging.
Markup formula
Selling price = Cost × (1 + Markup ÷ 100)
Markup = (Selling price − Cost) ÷ Cost × 100
Markup is what you add on top of your cost. Retailers and tradespeople like it because it's quick to apply: "cost plus 50%".
Worked example
A handmade candle costs 40 to make and you add a 50% markup.
Price = 40 × 1.5 = 60. Profit = 20. Margin = 20 ÷ 60 = 33.33%.
Converting markup and margin
Margin = Markup ÷ (1 + Markup)
Markup = Margin ÷ (1 − Margin)
Use decimals here (50% = 0.5). A 50% markup is 0.5 ÷ 1.5 = 0.333, a 33.3% margin.
The most common pricing mistake
"I want a 40% margin, so I'll add 40% to my cost" gives you a 28.6% margin, not 40%. If your goal is a margin, use the profit margin calculator's target-margin option instead.
Frequently asked questions
What is keystone pricing?
A 100% markup: doubling your cost to set the price. It gives a 50% margin.
Is markup the same as profit?
No. Markup is a percentage of cost; profit is the money left after subtracting cost from price. The calculator shows both.
Can markup be negative?
Yes, when you sell below cost, for example to clear old stock. The calculator accepts markups above −100% and flags the loss.
Formulas checked 29 October 2026. This calculator is for planning and education, not financial, tax or legal advice.