The maker's costing glossary
Markup
How much you add on top of cost to set the price.
Markup is the amount added to cost, expressed as a percentage of the cost (not of the price). A 100% markup doubles the cost; a 50% markup multiplies it by 1.5. It's the most intuitive way to set a price — start from cost and add — but because it's based on cost, the same markup produces a different margin.
Why it matters
Markup is how most makers actually think ('I paid X, I'll charge more'), so getting the relationship between markup and margin right is what keeps that instinct from quietly underpricing you. A markup that feels generous can hide a margin that won't pay the bills.
How to calculate it
Multiply the cost by one plus the markup percentage. To hit a target margin instead, convert: markup = margin ÷ (1 − margin).
Price = cost × (1 + markup %)
Example
A $60 cost with a 100% markup sells for $120. That doubles your money on cost — but it's only a 50% margin on the price.
In practice
'Keystone' (2× cost) is a 100% markup and a common wholesale-to-retail rule. Many makers use a higher markup for labor-intensive or one-of-a-kind pieces where the market supports it.
Common mistakes
- Assuming a given markup equals the same-numbered margin — it never does.
- Marking up materials only and forgetting labor is part of cost.
- Using one flat markup across products with very different labor content.
How CrafterBy handles it
CrafterBy lets you price by markup or by target margin and always shows both, so the number you pick is the number you actually get.