What is Markup Calculator?
A markup calculator answers the pricing question every seller starts with: if this unit costs me $12.40, what should I charge? Markup is profit expressed as a share of cost, so price = cost × (1 + markup). A 50% markup on $12.40 gives $18.60; a 100% markup (known in retail as keystone) gives $24.80. Because margin measures profit against the selling price instead, the same $12.40 profit is a 100% markup but only a 50% margin. Sellers who quote one and price using the other end up with thinner profits than they planned, which is why this calculator shows both numbers next to the price.
Common Uses for Markup Calculator
- Price a new product from a supplier quote and a target markup
- Check that a marketplace price still clears your profit target after fees
- Convert a markup you were given into the margin your P&L will show
- Build a price list at 30%, 50% and 100% markup for the same product
- Sanity-check a wholesale price against the standard keystone doubling rule
Markup, margin and multiplier in one table
20% markup = 16.7% margin = 1.20× cost. 30% = 23.1% = 1.30×. 50% = 33.3% = 1.50×. 100% = 50% = 2.00×. 150% = 60% = 2.50×. Bookmark the pattern: margin = markup ÷ (1 + markup). It is the conversion sellers get wrong most often when copying a competitor's pricing.
Why pricing from margin is safer
When you price from margin you are stating the outcome you need: 60% of the selling price has to be gross profit. Pricing from markup only fixes the gap between cost and price, so any fee increases erode it. On a $24.80 sale, a 15% marketplace referral fee takes $3.72 — enough to turn a healthy 50% margin into a 35% margin. Run the fee-based profit calculator before you commit to a price list.
The psychology of the price point
The arithmetic gives you a floor, not a final number. Charm pricing ($24.99 rather than $25.00), bundle thresholds and free-shipping cut-offs all shift conversion, and they change the margin slightly. Settle the economics here first, then choose the price point that converts best within that band.