Unit Economics
Markup ↔ Margin Converter
The number people mix up most: a 50% markup is only a 33% margin. Enter the margin you actually want and see the markup and price it takes.
Inputs
- Unit cost — What the item costs you to make or buy.
- Target margin — The profit share you want to keep out of the final price.
How to use this calculator
- Enter your unit cost and the profit margin you actually want to keep.
- The tool returns the price and the markup that margin requires.
- Use it to stop the classic mistake of setting a markup and getting a much smaller margin.
What each term means
- Margin
- Profit as a share of the selling price.
- Markup
- Profit as a share of the cost. A 50% markup is only a 33% margin.
- Keystone pricing
- Doubling cost (100% markup), which is a 50% margin and common in retail.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.