🏷️ Markup Calculator
Calculate selling price from cost and markup percentage — or find the markup on an existing price. Understand the difference between markup and margin.
Markup vs Margin — The Most Confused Pricing Concepts
Markup and margin both describe the relationship between cost and price, but they use different bases. Markup = (Price − Cost) ÷ Cost × 100. Margin = (Price − Cost) ÷ Price × 100. A 50% markup on a $10 item gives a $15 price and a 33.3% margin. A 50% margin on a $10 cost gives a $20 price and a 100% markup. Confusing these two is one of the most common and costly pricing mistakes in business.
Markup to Margin Conversion
To convert markup to margin: Margin = Markup ÷ (1 + Markup). To convert margin to markup: Markup = Margin ÷ (1 − Margin). Common equivalents: 25% markup = 20% margin. 50% markup = 33.3% margin. 100% markup = 50% margin. 200% markup = 66.7% margin. Retailers often set targets in margin terms (e.g. "we need 40% margin") — the corresponding markup is 66.7%.
People Also Ask
Retail markup varies widely by category. Jewelry: 50–300%. Clothing/apparel: 100–150%. Electronics: 10–30%. Grocery/food: 5–25%. Furniture: 100–200%. Hardware: 40–100%. Luxury goods: 300%+. Higher markup doesn't always mean higher profit if sales volume is lower — total gross profit depends on both markup and volume.
Selling Price = Cost × (1 + Markup % ÷ 100). Example: Cost = $25, Markup = 60%. Selling Price = $25 × 1.60 = $40. Gross profit = $15. Gross margin = $15 ÷ $40 = 37.5%.
Retailers often think in markup because they start with the cost and add a percentage to get the price. Accountants and finance teams prefer margin because it expresses profitability as a percentage of revenue — the standard for income statements and financial reporting. Both are correct; just know which you're using.