PriceLift

Markup Calculator

Start from a cost and target markup — get the final price you should charge, plus the resulting profit margin.

Cost

Markup %

Selling price

$64.00

Profit per unit

$24.00

Resulting margin

37.5%

What you entered

Cost: $40Markup: 60%

1
Selling price = cost × (1 + markup%)
$40 × (1 + 60/100)= $64
2
Profit per unit
$64 − $40= $24
3
Resulting margin
$24 ÷ $64 × 100= 37.50%

Result

Selling price: $64.00

A 60% markup on a $40 cost gives a selling price of $64.00 — a resulting margin of 37.5% (markup % and margin % are never equal, since they divide by different bases).

Selling price and resulting margin for common markups on a $40 cost

Every row applies price = cost x (1 + markup / 100) to a $40 unit cost, then reports the profit and the margin that markup produces. Because margin depends only on the markup percentage, the right-hand column is a straight markup-to-margin conversion that works at any cost.

Cost	Markup	Selling price	Profit per unit	Resulting margin
$40	10%	$44.00	$4.00	9.09%
$40	20%	$48.00	$8.00	16.67%
$40	25%	$50.00	$10.00	20.00%
$40	30%	$52.00	$12.00	23.08%
$40	40%	$56.00	$16.00	28.57%
$40	50%	$60.00	$20.00	33.33%
$40	60%	$64.00	$24.00	37.50%
$40	75%	$70.00	$30.00	42.86%
$40	100%	$80.00	$40.00	50.00%
$40	150%	$100.00	$60.00	60.00%
$40	200%	$120.00	$80.00	66.67%
$40	300%	$160.00	$120.00	75.00%

The markup-to-margin column holds for any cost, not just $40: a 50% markup is always a 33.33% margin and a 100% markup is always a 50% margin. Only the dollar columns scale with cost, so double the cost and the selling price and profit double while the margin stays put. The cost figure has to be your true landed unit cost including freight and duty, otherwise the price the tool returns is too low. This is a pricing formula, not a pricing strategy, so check the resulting price against what the market will actually pay before you commit to it.

Choosing a markup

Retail: 50–100%. Restaurants: 200–400% on food. SaaS often markets 70%+ gross margins. Use markup to set price, then check margin to verify it makes sense.

Frequently asked questions

My product costs $25 to make and I want a 60% markup — what should I charge?

Price = cost × (1 + markup/100) = $25 × 1.60 = $40. Your profit is $15 per unit. The resulting profit margin is $15/$40 = 37.5%. The profit margin calculator verifies this from the selling-price side.

How do I convert between markup and margin?

Margin = markup / (1 + markup). So 60% markup = 0.60 / 1.60 = 37.5% margin. Going the other way: markup = margin / (1 − margin). So 37.5% margin = 0.375 / 0.625 = 60% markup. They're always different numbers unless both are zero.

What markup do restaurants typically use?

Restaurants mark up food 200-400% (a $5 ingredient plate sells for $15-25). Beverages are marked up even more — a $0.20 cup of coffee sells for $3-5 (1,500-2,500% markup). These high markups cover labor, rent, and the 60-70% of revenue that isn't food cost.

How is this different from the profit margin calculator?

The markup calculator starts from cost and adds a percentage to find selling price. The profit margin calculator starts from selling price and cost to find margin percentage. They're inverse problems — use whichever matches the direction of your question.