Markup Calculator
Calculate markup percentage from cost and selling price, or find the selling price from cost and desired markup. See also Margin Calculator and Discount Calculator.
How to Calculate Markup
Markup is the percentage added to the cost price to determine the selling price. It represents how much more than the cost you charge. For example, if an item costs $50 and you sell it for $75, the markup is 50% because you added $25 (50% of $50) to the cost. Markup is calculated based on cost, which distinguishes it from margin (calculated based on selling price). Understanding markup is essential for pricing products profitably.
Markup Formula
Markup % = ((Selling Price − Cost) / Cost) × 100
To find selling price from markup:
Selling Price = Cost × (1 + Markup% / 100)
Relationship to margin:
Margin % = Markup% / (100 + Markup%) × 100
Example Calculation
Cost Price: $50.00
Selling Price: $75.00
Markup = (75 − 50) / 50 × 100 = 50%
Profit = $75 − $50 = $25.00
Margin = 25 / 75 × 100 = 33.33%
Markup vs Margin Reference Table
| Cost | Markup % | Selling Price | Profit | Margin % |
|---|---|---|---|---|
| $50 | 10% | $55.00 | $5.00 | 9.09% |
| $50 | 25% | $62.50 | $12.50 | 20.00% |
| $50 | 50% | $75.00 | $25.00 | 33.33% |
| $50 | 75% | $87.50 | $37.50 | 42.86% |
| $50 | 100% | $100.00 | $50.00 | 50.00% |
| $50 | 150% | $125.00 | $75.00 | 60.00% |
| $50 | 200% | $150.00 | $100.00 | 66.67% |
Frequently Asked Questions
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 $50 item gives a $75 selling price, but the margin is only 33.33%. Markup is always higher than margin for the same transaction.
What is a typical markup for retail?
Retail markups vary widely by industry. Grocery stores typically use 25-50% markup, clothing 100-300%, jewelry 100-400%, and restaurants 200-400% on food items. The appropriate markup depends on overhead costs, competition, and perceived value.
How do I convert markup to margin?
To convert markup to margin: Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) gives a margin of 0.50 / 1.50 = 33.33%. To convert margin to markup: Markup = Margin / (1 − Margin).
Can markup be over 100%?
Yes. A 100% markup means the selling price is double the cost. A 200% markup means the selling price is triple the cost. Many industries regularly use markups well over 100%, especially luxury goods, software, and services.