Markup calculator

Both describe the same dollar profit, measured against different bases. Markup divides by cost; margin divides by price. Because price is always bigger than cost, the margin percentage is always smaller than the markup percentage.

This matters when someone says “we need a 50% margin” and you apply a 50% markup instead: on a $10 cost you would charge $15 (a 33% margin) instead of the $20 they meant.

Markups vary widely, so treat these as patterns rather than targets:

• Keystone (100%) markup — doubling the wholesale cost is a long-standing convention in gift, apparel and boutique retail.
• Handmade goods — makers often price at two to four times material cost so labor is paid for, then check the result against the market.
• Food — restaurants usually think in food-cost percentage instead; a 30% food cost is roughly a 233% markup on ingredients.
• Resale and dropshipping — markups are often lower because the product is easy to compare elsewhere.

A jewelry seller pays $12 in materials and packaging for a pendant and wants a 150% markup. Price = $12 × 2.5 = $30. Profit is $18, which is a 60% margin.

After Etsy fees of roughly $3 on that sale, the real margin falls closer to 50% — which is why the fee belongs in your cost before you apply the markup.