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Markup Calculator
Calculate markup percentage, profit margin, cost, and selling price. Convert between markup and margin with our free calculator.
Formula:Markup = (Selling Price - Cost) / Cost × 100
Markup
50.0%
Of cost
Margin
33.3%
Of price
Pricing Summary
Cost$50
Selling Price$75
Gross Profit$25
For Target Profit
Required Price$75
Required Markup50.0%
Required Margin33.3%
Quick Reference
Markup is based on cost
Margin is based on selling price
50% markup = 33.3% margin
Pricing Details
Enter cost and price to calculate markup and margin
Choose which value you want to find
$
The price you pay to acquire or produce the item.
$
The price at which you sell the item to customers.
Quick Presets
Markup
50.0%
Added to cost
Margin
33.3%
Of selling price
Gross Profit
$25
Per unit
Price Multiplier
1.50x
Cost to price ratio
Cost vs Profit Breakdown
Visual breakdown of your selling price
Cost
$50
Profit
$25
Markup vs Margin Relationship
See how margin changes as markup increases
Key insight: Margin approaches but never reaches 100%, no matter how high the markup. This is because margin is profit as a percentage of selling price.
Markup
50.0%
Of cost
Margin
33.3%
Of price
Pricing Summary
Cost$50
Selling Price$75
Gross Profit$25
For Target Profit
Required Price$75
Required Markup50.0%
Required Margin33.3%
Quick Reference
Markup is based on cost
Margin is based on selling price
50% markup = 33.3% margin
Quick Answer: What is Markup vs Margin?
Markup and margin are both ways to express profit, but calculated differently. Markup % = (Profit / Cost) x 100, while Margin % = (Profit / Selling Price) x 100. Example: If cost is $50 and selling price is $75, the profit is $25. Markup = ($25 / $50) x 100 = 50%. Margin = ($25 / $75) x 100 = 33.3%. A 50% markup equals a 33.3% margin.
Key Facts About Markup and Margin
- Markup % = ((Selling Price - Cost) / Cost) x 100
- Margin % = ((Selling Price - Cost) / Selling Price) x 100
- Markup is always higher than margin for the same profit
- 50% markup = 33.3% margin; 100% markup = 50% margin
- To convert: Margin = Markup / (100 + Markup) x 100
- Retail industry typically uses 50% markup (33% margin)
- Restaurants often use 300% markup (75% margin) on food
- Margin can never be 100% or higher; markup can be unlimited
Adjust Markup Percentage
See how different markup percentages affect profit and margin
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Personalized Insights
3 insights based on your inputs
Good News
Your 33.3% margin is solid. Many retail businesses target 30-50% margins to cover overhead and generate profit.
Note
Your 50% markup means you sell for 1.50x your cost. Remember: a 100% markup = 50% margin, not equal percentages.
Note
Each $1 increase in cost requires a $2 selling price increase to maintain your 50% markup.
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Frequently Asked Questions
Markup is the percentage added to cost to determine selling price (profit / cost). Margin is the percentage of selling price that is profit (profit / selling price). For example, if you buy for $50 and sell for $75, the $25 profit gives you 50% markup but only 33.3% margin. Markup is always the higher number.
Markup % = ((Selling Price - Cost) / Cost) x 100. Example: Cost is $50, Selling Price is $75. Markup = (($75 - $50) / $50) x 100 = 50%. This means you added 50% of the cost as profit.
Margin % = ((Selling Price - Cost) / Selling Price) x 100. Example: Cost is $50, Selling Price is $75. Margin = (($75 - $50) / $75) x 100 = 33.3%. This means 33.3% of your selling price is profit.
Margin = Markup / (100 + Markup) x 100. For example, 50% markup: Margin = 50 / (100 + 50) x 100 = 33.3%. Quick conversions: 25% markup = 20% margin, 50% markup = 33.3% margin, 100% markup = 50% margin.
Markup = Margin / (100 - Margin) x 100. For example, 25% margin: Markup = 25 / (100 - 25) x 100 = 33.3%. Quick conversions: 20% margin = 25% markup, 33.3% margin = 50% markup, 50% margin = 100% markup.
Good markup varies by industry. Retail: 50% (keystone markup). Grocery: 10-15%. Restaurants: 200-300% on food. Jewelry: 100%+. Electronics: 20-30%. The right markup depends on your costs, competition, and target market.
Markup and margin serve different purposes. Markup helps you price products (add X% to cost). Margin helps analyze profitability (X% of revenue is profit). Investors often prefer margin; retailers often use markup for simplicity.
No, margin is always lower than markup for the same transaction. This is because margin uses the larger selling price as its base, while markup uses the smaller cost. A 100% markup equals only 50% margin.
Keystone pricing is a common retail strategy where the selling price is exactly double the cost (100% markup, 50% margin). It is simple to calculate and provides a healthy profit margin for most retail businesses.
Selling Price = Cost x (1 + Markup% / 100). Example: If cost is $50 and you want 60% markup: Price = $50 x (1 + 0.60) = $50 x 1.60 = $80.
Joseph OrdunaFounder & Software Engineer
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).
Markup
50.0%
Of cost
Margin
33.3%
Of price
Pricing Summary
Cost$50
Selling Price$75
Gross Profit$25
For Target Profit
Required Price$75
Required Markup50.0%
Required Margin33.3%
Quick Reference
Markup is based on cost
Margin is based on selling price
50% markup = 33.3% margin