Markup pricing is the everyday workhorse of retail, wholesale, freelancing and trades: take your cost, add a percentage, and you have a selling price. It is simple, but the percentage you pick decides your real profit — and most people underestimate how much markup they need to hit a target margin. This calculator works it both ways. Enter a cost and a markup percentage to get the selling price and profit, or enter a cost and the margin you want and it finds the markup that gets you there. Freelancers can use it to turn an hourly cost into a billable rate; shop owners can price entire categories consistently instead of guessing item by item.
The formula
Example
$45 cost with 60% markup. Price = $45 × 1.60 = $72. Profit is $27, which is a 37.5% margin ($27 ÷ $72).
Markup to margin, at a glance
Because the question comes up constantly: 25% markup ≈ 20% margin, 33% markup ≈ 25% margin, 50% markup ≈ 33.3% margin, 67% markup ≈ 40% margin, 100% markup = 50% margin. If a supplier quotes "40% margin" terms, you need a 66.7% markup on cost to match it.
Frequently asked questions
How do I calculate markup on a product?
Subtract cost from price, divide by cost, multiply by 100. A $72 price on a $45 cost is ($72 − $45) ÷ $45 = 60% markup.
What markup should I use?
Retail commonly uses 50–100% (keystone is 100%), restaurants 300%+ on some items, freelancers 2–3x their cost rate. Work backwards from the margin your business needs.
Is a 50% markup the same as a 50% margin?
No. A 50% markup gives a 33.3% margin. A 50% margin needs a 100% markup (doubling the cost).