Markup calculator.
Enter your cost and either a markup % or a selling price. See the other one, plus margin % (which is NOT the same as markup) and profit per unit.
Per item
Defaults work for most small shops in the EU.
Selling price
How this calculator works (the same formula nouz uses)
This tool starts from a cost and a markup and shows you the price it produces — plus the margin that price actually delivers. That last step matters because markup and margin are not the same number, and confusing them is the most common pricing mistake small-business owners make.
Selling price = cost × (1 + markup %)Profit per item = price − costMarkup % = profit ÷ cost (divided by cost)Margin % = profit ÷ price (divided by price)
Markup is measured against what you paid; margin is measured against what you charge. Same profit euros, different denominator — which is why a big markup always looks like a smaller margin. Get the two mixed up and you'll price a whole range thinking you're safe, only to find at year end that the margin you actually banked was well below what you'd planned.
A worked example
Using the defaults: an item that costs €10 with a 50% markup. Price = €10 × 1,50 = €15. Profit per item = €15 − €10 = €5. Now the twist: that €5 profit is 50% of the €10 cost (the markup) but only 33,3% of the €15 price (the margin). So a "50% markup" is really a 33% margin. Push the markup to 100% and the price becomes €20, a 50% margin; a 200% markup gives €30, a 67% margin. The gap between the two numbers widens the higher you go.
What a healthy number looks like
There's no universal "right" markup — it depends on category and how much handling, waste, and discounting you carry. As rough retail rules of thumb, here is the markup you need for a given margin:
| You want a margin of… | Set a markup of… |
|---|---|
| 33% | 50% |
| 40% | 67% |
| 50% | 100% (keystone) |
| 60% | 150% |
| 67% | 200% |
"Keystone" — doubling cost, a 100% markup — is the traditional retail default and lands you at a 50% margin. Most healthy independent shops run somewhere between a 40% and 60% margin once discounting is factored in. If you're routinely below that, either your buying cost is too high or your prices need to move; the table above shows exactly how far.
Common mistakes
- Setting markup to the margin you were told to hit. If your accountant asks for 40% margins and you apply a 40% markup, you actually land at 28,6% — well short.
- Comparing a supplier's "markup" to your "margin" as if they're interchangeable. They never are.
- Marking up on pre-VAT cost but pricing tax-inclusive without checking the margin the final shelf price really leaves you.
- Applying one blanket markup to every SKU, ignoring that fast movers and slow, high-handling items need different treatment.
When to use it — and what's next
Reach for this whenever a supplier quotes you a cost and you need a shelf price fast — or whenever someone throws a percentage at you and you're not sure if they mean markup or margin. It's the everyday pricing sanity check for any shop or boutique. Once the price is set, see what it keeps after all costs with the profit margin calculator, and check whether the item earns its shelf space with the GMROI calculator. To watch these margins land in your real daily numbers, see nouz for retail.
Common questions
What's the difference between markup and margin?
Markup is what you add to cost; margin is what stays as profit out of the selling price. Same profit euros, different denominator. A 50% markup is a 33% margin, a 100% markup is a 50% margin, and a 200% markup is a 67% margin. The gap widens the higher you go.
How do you calculate markup percentage and margin percentage?
Markup percent equals profit divided by cost; margin percent equals profit divided by price, where profit is price minus cost. The only difference is the denominator: markup divides by what you paid, margin divides by what you charge. Selling price itself equals cost times one plus the markup.
Can you walk through a worked example?
With the defaults, a 10 euro cost at 50% markup gives a price of 15 euros and 5 euros of profit. That 5 euros is 50% of the 10 euro cost, so a 50% markup, but only 33,3% of the 15 euro price, so a 33% margin. Same sale, two different percentages.
If my accountant wants 40% margins, what markup should I set?
Set the markup to 67% to actually reach a 40% margin. If you set a 40% markup by mistake, you land at only 28,6% margin, well below the target. This mismatch is the number one cause of shops that feel busy but never seem to be profitable.
What is keystone markup?
Keystone means doubling the cost, a 100% markup, which produces a 50% margin. It is the traditional retail default because it is quick to calculate and leaves a healthy cushion. Most well-run independent shops end up somewhere between a 40% and 60% margin once discounting is included.
When should I use markup versus margin?
Use markup when pricing items from cost, such as cost times 1,5 on the buying side. Use margin when measuring business health, such as saying you run 40% margins. Mixing the two is the most common source of pricing errors, so convert between them before you compare.