# Markup Calculator

> Work out the selling price from your cost and markup, or the markup you are already charging. The equivalent profit margin is shown next to it.

- Source: https://plugstack.dev/tools/markup-calculator/
- Published by: PlugStack
- Last updated: 2026-09-24

## The markup formulas

 
- **Markup %** = (price − cost) ÷ cost × 100
- **Selling price** = cost × (1 + markup)
- **Cost from price and markup** = price ÷ (1 + markup)
- **Markup → margin**: margin = markup ÷ (1 + markup)

 

**Example:** you buy a backpack for $32 and want a 75% markup. The price is 32 × 1.75 = $56. Profit is $24, which is a 42.9% margin.

 

## Common markups and what they mean

 

| Markup | Price on a $10 cost | Margin |
| --- | --- | --- |
| 30% | $13.00 | 23.1% |
| 50% | $15.00 | 33.3% |
| 100% (keystone) | $20.00 | 50% |
| 150% | $25.00 | 60% |
| 200% | $30.00 | 66.7% |

 

## When markup is the better tool

 

Markup is natural when every product has a known landed cost and you apply a standard rule per category — for example 80% on accessories and 40% on electronics. It is also how most wholesale and distribution price lists are built: each step in the chain adds its markup to the price it paid.

 

If you sell through distributors or retailers, the [wholesale price calculator](https://plugstack.dev/tools/wholesale-price-calculator/) walks the whole chain from your cost to the shelf price.

 

## Markup mistakes to avoid

 
- **Using the ex-works cost.** Add freight, duties and packaging to get the landed cost before applying a markup.
- **Stacking discounts on top of a thin markup.** A 20% sale on a 30% markup leaves almost nothing. Check with the [discount calculator](https://plugstack.dev/tools/discount-calculator/).
- **Confusing markup with margin** in supplier or retailer negotiations — always say which one you mean.

## FAQ
### How do I calculate markup?
Markup % = (price − cost) ÷ cost × 100. A $40 price on a $25 cost is a (40 − 25) ÷ 25 = 60% markup.

### How do I add a markup to a cost?
Price = cost × (1 + markup). A 60% markup on $25 is 25 × 1.6 = $40.

### What is keystone markup?
Keystone means doubling the cost — a 100% markup, which equals a 50% margin. It is the traditional retail rule of thumb, especially for apparel and gifts.

### Can markup be more than 100%?
Yes. Markup is measured against cost, so tripling the cost is a 200% markup. Margin, measured against price, always stays below 100%.

### Should I price with markup or margin?
Markup is easier when you start from a supplier cost; margin is easier when you plan against a profit target or compare products. They convert into each other, so use whichever your team thinks in — just don’t mix them.