What is markup in pricing?

Markup is the percentage added to the cost price of goods to cover overhead expenses and generate profit.

How do you calculate a 40% markup?

Multiply your cost by 1.40 (e.g. $50 cost × 1.40 = $70 selling price).

Keystone pricing is a retail pricing rule where items are marked up by exactly 100% of their wholesale cost.

Margin = Markup / (1 + Markup). A 100% markup equals a 50% profit margin.

Input what you paid for the product or service.

Specify the percentage you want to mark up the product.

Inspect the calculated retail selling price.

Review gross profit dollars and equivalent margin percentage.

The formula for finding selling price from cost and markup:

Selling Price = Cost + (Cost × (Markup% / 100))
Gross Profit = Selling Price - Cost

Calculates target retail selling price

Calculates gross profit dollars per unit

Computes equivalent profit margin percentage

Instant real-time computation

Clean financial overview layout

Standard retail "keystone pricing" uses a 100% markup (doubling the wholesale cost).
Account for overhead expenses like shipping, processing fees, and returns when setting markup.

Calculate gross profit margin percentage, net profit, and markup from cost and revenue.

Calculate break-even units and revenue needed to cover fixed and variable business costs.

Add or remove Value Added Tax (VAT) and calculate net, gross, and tax amounts.