Cost Markup Calculator
Markup applied to cost, with the true margin shown.
Selling price
$30.00
33.3% margin
Markup always sounds larger than the margin it delivers. For a target margin, apply margin ÷ (1 − margin) as the markup.
How the Cost Markup Calculator works
Markup is the percentage added to cost, and it is the number suppliers and buyers usually speak in. Its one trap is that it always sounds larger than the margin it delivers — so it is worth seeing both together.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate markup?
(Price − cost) ÷ cost × 100. A £30 item costing £20 carries a 50% markup and a 33.3% margin. The markup figure is always the larger of the two.
What markup is standard in retail?
Keystone — 100% — is the traditional benchmark. Categories with high shrinkage, slow turnover or heavy returns use more; fast-moving low-value goods use less. Grocery runs well under 50%.
How do I hit a target margin using markup?
Markup = margin ÷ (1 − margin). For a 40% margin, apply a 66.7% markup. Applying a 40% markup instead delivers only a 28.6% margin.
Should markup be applied before or after shipping?
Inbound freight belongs in the cost base before markup — it is part of what the unit cost you. Outbound shipping is a separate decision about whether to charge or absorb it.