Formula
Price = Cost × (1 + Markup) · Margin = Markup ÷ (1 + Markup)
FAQ
Why is margin lower than markup?
Markup is a percentage of cost; margin is a percentage of the (higher) selling price. Same profit, bigger denominator.
What markup is typical?
It varies hugely — apparel often uses 100%+ (keystone), while thin-margin categories may use 20–30%. Work backwards from the margin your cost structure needs.