Markup is the percentage added on top of cost to reach a selling price. Use this tool to price products consistently and to see how markup translates into profit margin.
How to use the Markup Calculator
- 1 Choose whether you know the markup or the selling price.
- 2 Enter the cost and the markup percentage (or price).
- 3 Review the price, profit per unit and the equivalent margin.
Formula
Price = Cost × (1 + Markup ÷ 100) Markup = (Price − Cost) ÷ Cost × 100 Margin = (Price − Cost) ÷ Price × 100
Worked examples
Input: Cost $40, markup 50%
Result: Price $60
Profit $20, margin 33.3%
Input: Cost $25, price $40
Result: Markup 60%
Margin 37.5%
Markup vs. margin
Both describe the same profit but use a different base. Markup divides profit by cost; margin divides profit by price. A 100% markup is only a 50% margin. Confusing the two is one of the most common pricing mistakes in small businesses.
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 200% | 66.7% |
Frequently asked questions
What is a typical retail markup?
It varies by industry: many retailers use 50–100% (keystone pricing doubles the cost), while groceries often run much lower.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. A 60% markup is 60 ÷ 160 × 100 = 37.5% margin.
Can markup be over 100%?
Yes. Any price more than double the cost is a markup above 100%. Margin, however, can never reach 100%.
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