Business & Self-Employed · United States
Markup Calculator
Updated on 22 Oct 2026 · Checked by Aotob
$60 with a 50% markup sells for $90.
You make $30 on each one, a 33.3% margin.
Selling price
$90
CostProfit
Profit on each sale$30
Gross margin33.33%
Keystone (100%) price$120
A 50% markup is only a 33.3% margin. Mixing the two up is a common way to underprice.
Show the working
Price = 60.00 × (1 + 50%) = 90.00
Margin = 50 ÷ (100 + 50) = 33.33%
Markup and margin
| Markup | Price | Margin |
|---|---|---|
| 20% | 72.00 | 16.7% |
| 25% | 75.00 | 20% |
| 33% | 80.00 | 25% |
| 50% | 90.00 | 33.3% |
| 75% | 105.00 | 42.9% |
| 100% | 120.00 | 50% |
| 150% | 150.00 | 60% |
| 200% | 180.00 | 66.7% |
Questions people ask
How do I work out markup?
Price = cost × (1 + markup). A 50% markup on $60 is $90.
What is keystone pricing?
A 100% markup: double the cost. It is a common starting point in retail and gives a 50% margin.
Why is margin smaller than markup?
Margin divides the same profit by the price, which is bigger than the cost.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobBefore sales tax, VAT or GST.Report an issue