Markup Calculator
Determine the ideal selling price by applying a markup percentage to your cost.
Pricing Strategy
Selling Price
Recommended Price
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Set Profitable Prices
Don’t guess your prices. Use a consistent markup strategy to ensure you cover costs and make a profit.
Markup vs Margin Cheat Sheet
If you want to keep a specific Profit Margin, you need to apply a higher Markup.
| Target Margin | Required Markup |
|---|---|
| 10% | 11.1% |
| 20% | 25.0% |
| 33% | 50.0% |
| 50% | 100.0% (Doubling) |
| 60% | 150.0% |
Use this calculator to find the exact Selling Price you need to set to achieve your desired Markup.
Frequently Asked Questions
What is Markup?
Markup is the amount you add to the cost price of a product to determine its selling price. It is usually expressed as a percentage of the cost.
What is the Markup Formula?
Markup Percentage = `((Selling Price - Cost Price) / Cost Price) * 100`.
Is Markup the same as Margin?
No! Markup is based on Cost. Margin is based on Revenue. 50% Markup = 33.3% Margin.
What is 'Keystone' pricing?
Keystone pricing is a standard retail practice of doubling the wholesale cost to set determining the selling price. This equals a 100% Markup (or 50% Margin).
How do I calculate Selling Price from Markup?
Selling Price = `Cost Price * (1 + Markup/100)`. Example: Cost 100, Markup 20% -> 100 * 1.20 = 120.
Why is Markup always higher than Margin?
Because Markup uses the smaller number (Cost) as the denominator, whereas Margin uses the larger number (Price) as the denominator.
What is a typical markup for food?
Restaurants typically have high markups (200% - 300%) to cover high overheads like rent, staff, and spoilage.
Does markup include tax?
Generally, markup is calculated before tax. Sales tax/GST is added on top of the final selling price.
Can markup be negative?
A negative markup implies you are selling below cost (Loss Leader strategy). This is done sometimes to clear liquidating stock or attract customers.
How does volume affect markup?
High-volume items (like milk) usually have low markups. Low-volume items (like luxury watches) need high markups to cover the slow turnover.