What is the difference between markup and margin?

Markup is the profit divided by the cost. A 50% markup on a $10 item gives a $15 price ($5 profit / $10 cost = 50%). Margin is the profit divided by the selling price. That same $15 price has a 33.3% margin ($5 / $15). Markup is always higher than margin for the same price.

What is a keystone markup?

Keystone markup is a traditional retail rule of thumb: double the wholesale cost to set the retail price, which is a 100% markup (or 50% margin). It is common in apparel and gift retail.

Can margin ever equal or exceed 100%?

No. Margin is capped below 100% because profit cannot exceed revenue. If you enter 100% or more, the tool will show an error. Markup, however, can exceed 100%.

Does this tool account for taxes or fees?

No. The calculation is gross margin/markup on cost only. Sales tax, platform fees, and shipping costs are not factored in. Add those to your cost before entering it here if you want them included.

How do I find the margin if I already have a price and cost?

This tool calculates a selling price from cost plus a target markup or margin; the displayed retail price is not an input. To analyze an existing price, calculate profit as price minus cost, then divide profit by price for margin or by cost for markup.

Retail Price Calculator

Enter product cost and a markup or margin percentage to instantly get the retail price, profit amount, and both markup and margin figures.

Inputs

Product Cost (what you pay)

Pricing Method

Markup Percentage (profit / cost)

Results

Retail Selling Price

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Cost

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Gross Profit

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Markup

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Margin

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Summary

This calculator converts a product cost into a retail selling price using either a markup percentage (cost-based) or a margin percentage (revenue-based). Enter either input and the other updates automatically, along with the gross profit amount. It is useful for retailers, wholesalers, and ecommerce sellers setting prices that hit a target profitability.

How it works

Enter the product cost (what you pay to acquire or make the item).
Choose your pricing method: enter a markup % or a margin %.
The retail price, profit amount, and the complementary percentage update instantly.
Switch between markup and margin inputs at any time — both stay in sync.
Copy or note the calculated retail price for your store or price list.

Use cases

Set a retail price that achieves a target gross margin for a product category.
Quickly convert supplier cost into a storefront selling price using a standard keystone markup.
Compare the difference between a 50% markup and a 50% margin on the same cost.
Explore how different target margins or markups change the required retail price.
Price new SKUs consistently by applying a fixed markup across a product line.
Train sales staff on the difference between markup and margin.

Frequently Asked Questions

Last updated: 2026-06-11 · Reviewed by Nham Vu