Pricing & Markup Calculator

Markup is calculated on cost: (Price - Cost) ÷ Cost. Margin is calculated on price: (Price - Cost) ÷ Price. A 50% markup on $100 cost gives $150 price. A 50% margin on $150 price gives $75 profit. Margin is always lower than markup for the same numbers—don't confuse them!

Typical markups vary by industry: Retail 50-100%, Restaurants 200-300% on food, Jewelry 100-400%, Software 80-95% (high margin, low variable cost). Your markup must cover all costs plus desired profit. Use this calculator to find the price that achieves your target margin.

Use the formula: Selling Price = Cost × (1 + Markup %). For example, if your cost is $50 and you want a 60% markup: $50 × 1.60 = $80 selling price. For margin-based pricing: Selling Price = Cost ÷ (1 - Margin %). For 40% margin on $50 cost: $50 ÷ 0.60 = $83.33.

Use margin for pricing decisions because it reflects actual profitability relative to revenue. Financial statements use margins, making it easier to compare. Use markup when you want a simple multiplier on cost (common in retail). For business planning and investor discussions, always use margin.

Keystone pricing (50% markup) is common in retail—wholesale price × 2 = retail price. Some industries use triple markup (wholesale × 3). When selling wholesale, ensure your price covers costs plus minimum margin, while leaving room for retailers to mark up. Consider volume discounts for large wholesale orders.