AM Markup pricing is the simplest way to set a price: take what the product costs you and add a percentage on top. This calculator does that in one step, shows the profit and the margin that markup really gives you, and can round the result to a retail price ending. It also works backwards when you already have a price and want to know the markup.
How to use the markup calculator
- Choose the direction. Cost + markup gives you a price. Cost + price gives you the markup.
- Enter the product cost: what you pay the supplier per unit, plus any inbound shipping or duties you pay to get it to you.
- Enter the markup percentage, for example 100 for keystone, or enter the selling price in reverse mode.
- Optionally pick a price ending: .99, .95 or .00. The price is rounded up to the next price with that ending, so you never drop below the markup you asked for.
- Read the selling price, profit per unit and the equivalent margin. The conversion table below the result updates to your own cost and highlights the row closest to your markup.
How to calculate markup
| Result | Formula |
|---|---|
| Selling price | Cost × (1 + Markup) |
| Profit | Price − Cost |
| Margin | Profit ÷ Price × 100, or Markup ÷ (1 + Markup) |
| Markup from price | (Price − Cost) ÷ Cost × 100 |
Worked example with a price ending
A $14 cost with a 60% markup. The markup amount is $8.40, so the exact price is $22.40, the profit is $8.40 and the margin is 37.5%. With a .99 ending, the price rounds up to $22.99. The real markup becomes 64.2% ($8.99 ÷ $14) and the margin 39.1%, and the calculator shows both next to the exact figures, so you know what the rounding did.
Quick answers to common markup questions
- What is a 25% markup on $100? $100 × 1.25 = $125. The profit is $25, a 20% margin.
- What is a 20% markup on $500? $500 × 1.20 = $600, a $100 profit and a 16.7% margin.
- Is a 30% markup the same as a 30% margin? No. A 30% markup is a 23.1% margin. For a 30% margin you need a 42.9% markup.
- What markup is a $6 cost sold at $15? ($15 − $6) ÷ $6 = 150%.
Markup to margin conversion table
| Markup | Price on a $10 cost | Margin |
|---|---|---|
| 10% | $11.00 | 9.1% |
| 25% | $12.50 | 20% |
| 50% | $15.00 | 33.3% |
| 75% | $17.50 | 42.9% |
| 100% (keystone) | $20.00 | 50% |
| 150% | $25.00 | 60% |
| 200% | $30.00 | 66.7% |
| 300% | $40.00 | 75% |
| 400% | $50.00 | 80% |
The gap between the two numbers grows as markup rises. Doubling a markup from 100% to 200% only lifts the margin from 50% to 66.7%. If you think in margin, use the profit margin calculator, which works from a target margin directly.
Keystone pricing
Keystone pricing means selling at double the wholesale cost: a 100% markup and a 50% margin. It is a long-standing retail rule of thumb, and many wholesale price lists quote a suggested retail price at or near keystone. It is easy to apply and easy to explain to a supplier.
Keystone works when the cost you enter really is most of your cost per sale, as in a physical shop buying stock in bulk. It can be too low for small online sellers who pay for shipping, fees and ads on every order, and too high for commodity products where shoppers compare prices across many stores.
When markup pricing fails
Markup is calculated on product cost alone. Every cost that is not in that number comes out of your profit.
- Payment and marketplace fees. They are charged on the selling price, so they grow as the price grows. A 2.9% + $0.30 card fee on a $20 keystone price is $0.88, almost 9% of your $10 profit. Marketplace fees take more. See the Etsy fee calculator or the Shopify fee calculator.
- Returns. If one order in ten comes back and each return costs you $8 in shipping and lost stock, that adds $0.80 to the cost of every sale.
- Free shipping. If you pay shipping, add it to the cost before applying markup, or the markup has to cover it.
- Discounts. A 25% off sale on a keystone price cuts the margin from 50% to 33.3%. The discount calculator shows the effect.
- Ad spend. If you pay for traffic, the ad cost per sale has to fit inside the markup.
Here is the difference in practice. A product costs $10 from the supplier, and you pay $5 to ship each order, $1 for packaging and about $0.88 in card fees at a $20 price. Keystone on the $10 supplier price gives $20 and leaves $3.12 after those costs. Keystone on a $16 landed cost gives $32 and leaves far more room for ads and returns.
Tip: Enter a landed cost instead of the supplier price: product, inbound shipping, packaging and the shipping you pay per order. The same markup then gives a price that covers far more of your real costs.
Choosing a markup by product price
Fixed costs per order hurt cheap products most, so one markup rarely fits a whole catalog. A practical approach is to use a higher markup on low-cost items and a lower one on expensive items, then check the net result in the profit margin calculator.
| Landed cost | Markup | Price | Profit before fees |
|---|---|---|---|
| $4 | 250% | $14.00 | $10.00 |
| $15 | 120% | $33.00 | $18.00 |
| $60 | 70% | $102.00 | $42.00 |
These are illustrations, not rules. Compare the price with what similar products sell for before you commit.
Markup after a discount
Discounts come out of the markup, not the cost. A $20 keystone price on a $10 cost is a 100% markup. Run a 25% off sale and the price becomes $15, a 50% markup and a 33.3% margin. At 40% off, the price is $12, a 20% markup and a 16.7% margin, before any fees or shipping. If you plan regular sales, set the everyday markup high enough that the sale price still leaves a profit, and check it with the discount calculator before the sale goes live.
Price endings
Endings like .99 and .95 are common in retail, while .00 suits premium and handmade goods where a round price looks deliberate. Pick one ending and apply it across a catalog, so prices look consistent. When you change a whole catalog, AM Jarvis Bulk Edit Pro can apply price and compare-at changes to many Shopify or WooCommerce products with a preview before applying and one-click revert.
Markup formulas for a spreadsheet
If you price a whole catalog in Google Sheets or Excel, these formulas match the calculator. Put the cost in column A and the markup percentage in column B (as 60, not 0.6):
- Selling price:
=A2*(1+B2/100) - Price rounded up to .99:
=CEILING(A2*(1+B2/100)+0.01,1)-0.01 - Margin:
=B2/(100+B2), formatted as a percentage - Markup from a price in column C:
=(C2-A2)/A2, formatted as a percentage
Check a few rows against the calculator before trusting the sheet, especially the rounding formula, which varies slightly between spreadsheet apps.
Markup on services and quotes
Contractors, print shops and agencies often mark up materials and outside services they pass on to a client. A freelancer quoting a website that needs a $180 premium theme and $120 of stock photos might add a 20% markup to cover the time spent buying, licensing and managing them: $300 × 1.20 = $360. The markup is a handling charge, separate from the hourly rate. Say so on the quote if the client expects to see costs at face value.
Who uses this calculator
- Retailers and boutiques pricing wholesale stock at keystone or another standard markup.
- Online sellers turning a landed cost into a list price with a consistent ending.
- Makers and crafters pricing handmade goods from material cost.
- Contractors and freelancers adding a markup to materials on a quote.
Troubleshooting
- "Enter a cost above zero". Markup is measured against cost, so it cannot be calculated from a zero cost.
- The price is higher than expected. You picked a price ending, and the price was rounded up to it.
- "Every sale loses money". In reverse mode, the price is below the cost.
Common mistakes
- Confusing markup with margin. A 40% markup is a 28.6% margin, not 40%.
- Using the same markup on every product. Low-cost items need a higher markup to cover fixed fees and shipping.
- Forgetting to recheck after rounding. Endings change the real markup slightly.
- Ignoring break-even. Check the break-even calculator to see how many sales your markup needs to cover fixed costs.
The calculator runs in your browser and updates as you type. Nothing is stored or sent anywhere.