Pricing · Every marketplace
Markup Calculator
Turn cost and markup into a selling price — and see the margin you're really earning.
Last verified: · Standard accounting definitions · by Felix Oluwakeye
- Price formula
- cost × (1 + markup)
- Keystone
- 100% markup = 50% margin
- 50% markup
- = 33.3% margin
Price from markup
Reverse: markup from a price
Results
- Selling price
- $0.00
- Profit per unit$0.00
- Equivalent margin–
- Actual markup at your price–
Markup is applied to cost; margin is measured on the selling price. A 50% markup is only a 33.3% margin — know which one your target is.
Selling price = cost × (1 + markup%). A $60 cost at 50% markup sells for $90 — which is a 33.3% margin. Markup is applied to cost; margin is measured on the selling price. Keystone (100% markup) doubles the cost and equals a 50% margin. (Rates verified .)
| Fee | Rate | Applies to |
|---|---|---|
| 25% markup | 20% margin | $60 cost → $75 price |
| 50% markup | 33.3% margin | $60 cost → $90 price |
| 100% markup ("keystone") | 50% margin | $60 cost → $120 price |
| 200% markup | 66.7% margin | $60 cost → $180 price |
Worked example: 50% markup on a $60 cost
- Item cost: $60. Markup: 50%.
- Selling price = 60 × (1 + 0.50) = $90.
- Profit = $30 → margin = 30 ÷ 90 = 33.3%.
A 50% markup yields a 33.3% margin. If your business plan calls for "50%", make sure you know which of the two it means — the difference is $15 on this one sale.
Frequently asked questions
How do I calculate selling price from markup?
Multiply cost by (1 + markup%). A $60 item at 50% markup: 60 × 1.5 = $90. The calculator also runs the reverse — enter your actual selling price and it reports the markup you are really charging.
What is keystone pricing?
A 100% markup — doubling your cost. It equals a 50% margin and is the traditional retail default; whether it works online depends on category and marketplace fees, which can consume a third of that margin.
Why is my markup percentage always bigger than my margin?
Because markup divides profit by the (smaller) cost while margin divides the same profit by the (larger) selling price. The two describe the identical sale; markup just uses the smaller denominator.
What markup should I use to cover marketplace fees?
Fees come off the selling price, so a marketplace charging ~13% (like eBay) consumes 13 margin points. If you need a 30% net margin, price for roughly a 43% gross margin — that is a 75% markup. Run the exact numbers through our eBay or Etsy calculators.
Page changelog
- — Page published; formulas follow standard accounting definitions (markup on cost).