How do I calculate markup percentage?

Markup percentage = (Selling Price − Cost) ÷ Cost × 100. For example, if an item costs $50 and you sell it for $75, the markup is ($75 − $50) ÷ $50 × 100 = 50%.

What is the difference between markup and margin?

Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. A 50% markup on a $100 cost gives a $150 selling price, but the margin on that sale is only 33.3%. They describe the same profit in different terms.

What is a standard markup for retail?

Retail markups commonly range from 50% to 100% (known as 'keystone' pricing). However, markups vary significantly by industry — groceries may use 5-15%, while jewelry can exceed 200%.

How do I convert between markup and margin?

To convert markup to margin: Margin = Markup ÷ (1 + Markup). To convert margin to markup: Markup = Margin ÷ (1 − Margin). For example, a 50% markup equals a 33.3% margin.

Markup Calculator

Calculate your selling price from cost and markup percentage, or find the markup on an existing product. Get profit and margin figures instantly.

Calculate Markup

Cost Price ($)

Desired Markup (%)

Selling Price

$70.00

Markup

40.0%

Profit

$20.00

Margin

28.6%

Breakdown

Cost price: $50.00
Markup amount: +$20.00
Selling price: $70.00
Markup % (Profit ÷ Cost): 40.00%
Margin % (Profit ÷ Selling Price): 28.57%

Understanding Markup

Markup is the amount added to the cost of a product or service to determine the selling price. It's one of the most common pricing strategies used by businesses of all sizes.

Markup Formula

Selling Price = Cost × (1 + Markup% ÷ 100)

Markup% = (Selling Price − Cost) ÷ Cost × 100

Markup vs. Margin

This is a common source of confusion. Markup and margin are related but not the same. Markup is based on cost; margin is based on selling price. A 100% markup always gives a 50% margin. As markup increases, the gap between markup and margin widens.

Setting the Right Markup

Research competitor pricing to ensure your markup is competitive.
Account for all costs — not just the product cost, but shipping, handling, overhead, and marketing.
Consider different markups for different product categories based on demand elasticity and perceived value.
Review your markup regularly as costs and market conditions change.

Frequently Asked Questions

How do I calculate markup percentage?: Markup percentage = (Selling Price − Cost) ÷ Cost × 100. For example, if an item costs $50 and you sell it for $75, the markup is ($75 − $50) ÷ $50 × 100 = 50%.
What is the difference between markup and margin?: Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. A 50% markup on a $100 cost gives a $150 selling price, but the margin on that sale is only 33.3%. They describe the same profit in different terms.
What is a standard markup for retail?: Retail markups commonly range from 50% to 100% (known as 'keystone' pricing). However, markups vary significantly by industry — groceries may use 5-15%, while jewelry can exceed 200%.
How do I convert between markup and margin?: To convert markup to margin: Margin = Markup ÷ (1 + Markup). To convert margin to markup: Markup = Margin ÷ (1 − Margin). For example, a 50% markup equals a 33.3% margin.

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