How markup calculator works
Markup is how much you add to a product cost to set its selling price, expressed as a percentage of that cost. A 50% markup on a $100 item adds $50, giving a $150 price. It is the most common way retailers and service businesses turn a unit cost into a quoted price.
Profit margin is a different number that confuses many people: it is the same profit expressed as a percentage of the selling price instead of the cost. That same $50 profit on a $150 price is a 33.33% margin. The same dollars, two different percentages, because the bases differ (cost versus price).
Enter the unit cost and a markup percentage. The tool computes the selling price (cost times one plus the markup divided by 100), the profit per unit, and the equivalent profit margin so the markup-vs-margin distinction is visible at a glance. A 100% markup (keystone) doubles the cost and always equals a 50% margin.