B/Billable Toolkit
Free calculators for freelancers & small businesses
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Markup Calculator

Enter what an item costs you and the markup you want. You get the price to charge and what that means as a margin.

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Price

How it’s calculated

Markup is added on top of cost. The same profit expressed as a share of the selling price is the margin, which is always the smaller percentage.

price = cost × (1 + markup) margin = markup ÷ (1 + markup)

Worked example

A $24 item with a 60% markup sells for $38.40. That is $14.40 profit per item and a 37.5% margin.

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Questions

What is the difference between markup and margin?

Markup is profit divided by cost; margin is profit divided by price. A 60% markup is a 37.5% margin.

What markup should I use?

It varies by industry. Keystone pricing (100% markup, doubling cost) is common in retail; services often price from hourly rates instead.

Doing these numbers every month? Accounting software can automate invoices, reminders and tax reports.

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