Blog › Markup Calculator guide
How to Calculate Markup and Set a Price
Markup is how prices are actually built in shops, trades and workshops: take the cost, add a percentage, done. The trap is that markup percent is NOT profit margin percent — a 50% markup is only a 33% margin. This guide prices with markup correctly and shows both numbers side by side.
Step by step
- Open the Markup Calculator and enter the full cost of the item or job.
- Enter the markup percentage you want to apply.
- Read the selling price, the profit per unit, and — for honesty — the true margin percent that markup gives you.
Try it now — free, no sign-up
Open the Markup Calculator tool
Open the Markup Calculator tool
Tips for better results
- Typical markups: retail often 50-100% (keystone = double the cost), trades commonly 30-60% on materials. Your overhead decides what you actually need.
- Always sanity-check the resulting margin — if it is under your target, the markup is too low, however standard it seems.
- Price endings matter less than margin accuracy; get the math right first.
Frequently asked questions
What is the markup formula?
Price = Cost × (1 + Markup %). Example: cost $40 at 50% markup → price $60, profit $20.
If I want a 40% margin, what markup do I need?
Markup = Margin ÷ (1 − Margin) = 0.40 ÷ 0.60 = 66.7%. This is why the two numbers diverge — use the Profit Margin Calculator to cross-check.
Is a 100% markup the same as doubling?
Yes — 100% markup adds the full cost again, so price = 2 × cost, which is a 50% margin.