Markup Calculator
Free online markup calculator. Enter cost price and markup percentage to find selling price, profit amount, and profit margin. Understand the difference between markup vs margin with formulas and examples.
Markup Calculator
Enter your cost price and markup percentage to calculate the selling price, profit amount, and profit margin.
Markup vs. Margin
Markup and margin are both ways to express profit, but they divide by different numbers — and confusing them can lead to serious pricing mistakes.
Markup: Profit ÷ Cost × 100. A 50% markup on a $40 item gives a $20 profit and a $60 selling price.
Margin: Profit ÷ Selling Price × 100. That same $20 profit on a $60 selling price is a 33.3% margin.
Rule of thumb: margin is always lower than markup for any profitable product. Use the calculator above to see both figures side by side.
Typical Markup by Industry
Grocery: 10–25%
Clothing & Apparel: 100–350%
Restaurants: 200–400% on beverages, 100–150% on food
Jewelry: 300–500%
Consumer Electronics: 3–10%
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How to Calculate Markup
Markup is the percentage added to the cost of a product to determine its selling price. The formula is: Selling Price = Cost × (1 + Markup%). For example, if a product costs $50 and you want a 60% markup, the selling price is $50 × 1.60 = $80.
To find the markup percentage from known prices: Markup% = ((Selling Price - Cost) / Cost) × 100. If you buy something for $25 and sell it for $40, your markup is (($40 - $25) / $25) × 100 = 60%.
Markup is commonly used in retail, wholesale, and manufacturing to ensure each sale covers costs and generates profit. The right markup depends on your industry, competition, and operating expenses.
Markup vs Margin: Key Differences
Markup and margin are related but not the same. Markup is based on cost; margin is based on selling price. A 100% markup results in a 50% margin. This distinction is critical for pricing strategy.
How to Set the Right Markup
Your markup should cover all costs and leave room for profit. Consider: direct costs (materials, labor), overhead (rent, utilities, insurance), and desired profit margin.
Research competitor pricing to stay competitive. If your costs are higher, you may need to differentiate on quality or service rather than competing on price alone.
Test different price points. Sometimes a higher markup with fewer sales generates more profit than a lower markup with higher volume. Use this calculator to model different scenarios and find your optimal pricing strategy.
Markup to Margin Conversion
| Markup | Margin | Example (Cost $50) |
|---|---|---|
| 25% | 20% | Sell for $62.50 |
| 50% | 33.3% | Sell for $75 |
| 100% | 50% | Sell for $100 |
| 200% | 66.7% | Sell for $150 |
Common Markup Percentages by Industry
| Industry | Typical Markup | Notes |
|---|---|---|
| Grocery | 5-15% | High volume, low margins |
| Clothing retail | 100-300% | Keystone (100%) is standard |
| Restaurants | 200-400% | On food; beverages higher |
| Jewelry | 100-400% | Varies by piece type |
| Electronics | 10-50% | Competitive, lower markups |
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