Markup Calculator
Turn a cost and markup into a selling price, or convert between markup and margin in either direction.
Your numbers
What you pay for the product, landed at your door.
Your result · updates as you type
Selling price at 150% markup
$50.00
A $20.00 item sold at $50.00 is a 150% markup on cost and a 60% margin on price. Both describe the same $30.00 profit.
- Selling price
- $50.00
- Markup (on cost)
- 150%
- Gross margin (on price)
- 60%
- Profit per unit
- $30.00
Markup is profit divided by cost. Margin is profit divided by price. The same sale always has a bigger markup than margin, which is why a 100% markup is only a 50% margin.
Breakdown
- Markup → margin (price at your cost)
- 25% markup
- 20% margin · $25.00
- 50% markup
- 33.3% margin · $30.00
- 75% markup
- 42.9% margin · $35.00
- 100% markup
- 50% margin · $40.00
- 150% markup · yours
- 60% margin · $50.00
- 200% markup
- 66.7% margin · $60.00
- 300% markup
- 75% margin · $80.00
Markup vs margin, in plain English
Markup and margin describe the same profit, measured against different things. Markup compares profit with what you paid. Margin compares profit with what the customer paid.
| Formula | Example ($20 cost, $50 price) | |
|---|---|---|
| Markup | (price − cost) ÷ cost | 30 ÷ 20 = 150% |
| Margin | (price − cost) ÷ price | 30 ÷ 50 = 60% |
| Price from markup | cost × (1 + markup) | 20 × 2.5 = $50 |
| Price from margin | cost ÷ (1 − margin) | 20 ÷ 0.4 = $50 |
The default numbers match the table: a $20 cost with a 150% markup gives a $50 price and a 60% margin.
Using it on your store
- Pick one number and stick to it. Suppliers and retail buyers usually talk markup. Accountants and most profit reports talk margin. Mixing the two is how a “50%” price ends up earning a third.
- Shopify. Enter your Cost per item on each product, so Shopify tracks profit on it as well as the price.
- WooCommerce. Turn on Cost of Goods Sold under WooCommerce → Settings → Advanced → Features to store costs on products.
- Repricing a catalog. Once you've settled on a markup, apply it in bulk with the Shopify bulk price editor.
What markup leaves out
Markup is on product cost only. It ignores shipping, payment fees and ads, which is why a healthy-looking markup can still lose money online. Check the full picture with the profit margin calculator.
Questions people ask
What's the difference between markup and margin?
Markup is profit as a share of cost. Margin is profit as a share of price. Markup is always the bigger number for the same sale.
What markup gives a 50% margin?
A 100% markup, also called keystone. You double the cost, and half the price is profit.
Can margin be more than 100%?
No. Margin can approach 100% but never reach it, because profit can't be bigger than the price. Markup has no ceiling.
What markup should I use for ecommerce?
Work backwards from the net margin you need after shipping, fees and ads. Many direct-to-consumer brands need well above a 100% markup to stay profitable once ads are paid.
Related tools
Last reviewed 30 September 2026.
Sources: Shopify Help Center: Product pricing · WooCommerce docs: Cost of Goods Sold (COGS)
