Calculate markup percentage, selling price, or cost from any two values
Our Markup Calculator helps retailers, wholesalers, and manufacturers determine the optimal selling price by applying a markup percentage to the cost. It also calculates the resulting profit and gross margin, giving you a complete picture of your pricing strategy.
Setting the right markup is a balancing act between remaining competitive and ensuring sufficient profitability. Different industries have established norms — retail clothing might use keystone pricing (100% markup), while grocery stores operate on thin 10–15% markups. Understanding where your product fits is key.
This calculator also shows you the corresponding gross margin for any markup percentage. Since markup and margin are commonly confused, having both numbers side by side helps you avoid costly pricing errors when negotiating with vendors or presenting financials to stakeholders.
The selling price is derived by multiplying the cost by (1 plus the markup percentage). The profit is the difference between the selling price and cost, and the gross margin expresses that profit as a percentage of the selling price.
Markup percentages vary by industry. Retail clothing often uses a 50–100% markup (keystone pricing), grocery items may have only a 10–20% markup, and electronics typically range from 20–40%.
Markup is based on cost, while margin is based on the selling price. A 50% markup on a $50 cost gives a $75 selling price with a 33.3% margin. As markup increases, the gap between markup percentage and margin percentage widens.
To convert markup to margin, use the formula: Margin = Markup ÷ (1 + Markup). For example, a 50% markup converts to a 33.3% margin (0.50 ÷ 1.50 = 0.333). Conversely, to convert margin to markup: Markup = Margin ÷ (1 − Margin).
Keystone pricing is a retail strategy where the selling price is set at double the cost — a 100% markup. This is common in clothing, furniture, and specialty retail. While simple to apply, it may not always be optimal for competitive markets or price-sensitive products.
Most financial professionals prefer margin because it expresses profit as a percentage of revenue, making it easier to compare profitability across products and businesses. However, markup is often simpler for day-to-day pricing in retail and wholesale operations.