Key takeaways
- Price = cost × (1 + markup).
- Margin = markup ÷ (1 + markup).
- 100% markup (keystone) equals a 50% margin.
How the markup calculator works
Markup is added on top of cost. Because margin is measured against the higher selling price, it is always smaller than the markup.
Formula
Standard formula. Further reading: Investopedia – Markup · Investopedia – Profit margin
Worked example
Cost $100 with 50% markup: price = 100 × 1.5 = $150, profit $50, margin 33.3%.
Change any number above and the plain-English explanation updates instantly with your own figures.
Frequently asked questions
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). 100% markup = 50% margin.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). 40% margin = 66.7% markup.
What is keystone pricing?
Retail pricing at 100% markup — doubling the wholesale cost.
Should markup include overheads?
Your markup must cover overheads and profit, so set it high enough after checking your break-even point.
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Results are estimates for educational purposes and are not financial advice.