The formula
Price = cost × (1 + markup ÷ 100)
Margin = (price − cost) ÷ price × 100
Margin = (price − cost) ÷ price × 100
Common markups and the margins they give
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% (double) | 50% |
| 150% | 60% |
| 200% (triple) | 66.7% |
Wholesale and retail pricing often uses "keystone" pricing, a 100% markup, which gives a 50% margin. Remember that platform fees, shipping and ads come out of that margin, so check the final number in the profit margin calculator.
Frequently asked questions
Is a 100% markup the same as a 100% profit margin?
No. A 100% markup doubles the cost and gives a 50% margin. A 100% margin is impossible.
Which should I use, markup or margin?
Markup is easy when you set prices from cost. Margin is better for comparing products and checking profitability. Use both: set with markup, check with margin.
Last reviewed: November 2026 · By Muhammad Shujah