Start from an example:
Pricing
$
%
Added on top of cost. Can be over 100%.Check against a target (optional)
%
How markup works
Price from markup
cost × (1 + markup ÷ 100)A 1 140 ₽ cost with a 150% markup: 12 × 2.5 = 2 850 ₽.
Margin from markup
markup ÷ (100 + markup) × 100A 150% markup is a 60% margin. Margin is always lower than markup.
Markup for a target margin
margin ÷ (100 − margin) × 100For a 40% margin you need a 66.7% markup.
Frequently asked questions
Is a 100% markup a 50% margin?
Yes. Doubling the cost (100% markup) means half of the price is profit, a 50% margin.
Can markup be more than 100%?
Yes. Markup has no upper limit. Margin can't reach 100%.
What is keystone pricing?
Selling at double the cost, a 100% markup. It is a common starting point in retail.