Markup Calculator
Find the selling price and profit when adding a markup percentage to a cost.
TL;DR — Markup Calculator: A markup calculator finds the selling price of a product by adding a percentage of cost as markup. Markup is profit expressed as a percentage of cost, while profit margin expresses the same profit as a percentage of revenue. Retailers commonly use markup to set prices; financial reporting uses margin.
What is the Markup Calculator?
A markup calculator finds the selling price of a product by adding a percentage of cost as markup. Markup is profit expressed as a percentage of cost, while profit margin expresses the same profit as a percentage of revenue. Retailers commonly use markup to set prices; financial reporting uses margin.
How to use the Markup Calculator
- Enter the cost (amount paid to acquire or produce the item).
- Enter the markup percentage to apply.
- Read the selling price, profit amount and equivalent profit margin.
Formula
Selling Price = Cost × (1 + Markup/100) Profit = Selling Price − Cost Margin = Profit ÷ Selling Price × 100
Markup is profit as a % of cost; margin is profit as a % of selling price.
Worked example
A product costs $50 with a 40% markup. Selling price = 50 × 1.4 = $70. Profit = $20. Equivalent margin = 20 ÷ 70 = 28.57%.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. A 50% markup gives a 33.33% margin.
What is a typical retail markup?
It varies by industry — grocery 10–15%, apparel 100–200%, restaurants 200–300% on food costs, jewellery sometimes 200%+.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). A 50% markup equals 33.33% margin; a 100% markup equals 50% margin.
Should I use markup or margin in pricing?
Markup is easier for setting prices from a known cost. Margin is the right lens for measuring profitability of revenue.
How does cost change affect markup pricing?
A higher cost requires a higher selling price to keep the same markup percentage. Recalculate after each cost change.