Markup Calculator

Calculate selling price, profit, and profit margin from your cost and markup percentage. Includes reverse calculation and a markup vs. margin comparison table.

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Markup and Margin

See both markup percentage and profit margin side by side. Understand how they differ and convert between the two instantly.

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Reverse Calculation

Know the selling price but not the markup? Switch to reverse mode to calculate the markup percentage from cost and selling price.

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Frequently Asked Questions

How do you calculate markup percentage?
Markup percentage is calculated by dividing the profit by the cost, then multiplying by 100. The formula is: Markup % = ((Selling Price - Cost) / Cost) x 100. For example, if an item costs $50 and sells for $75, the markup is ($75 - $50) / $50 x 100 = 50%.
What is the difference between markup and margin?
Markup is the percentage added on top of the cost to determine the selling price. It uses cost as the base: (Profit / Cost) x 100. Margin is the percentage of the selling price that represents profit. It uses selling price as the base: (Profit / Selling Price) x 100. A 50% markup equals a 33.33% margin because the profit ($25 on a $50 cost) is one-third of the $75 selling price.
How do I convert markup to margin?
To convert markup to margin: Margin % = Markup % / (100 + Markup %) x 100. For example, a 50% markup converts to 50 / 150 x 100 = 33.33% margin. To go the other way, convert margin to markup with: Markup % = Margin % / (100 - Margin %) x 100. A 33.33% margin converts to 33.33 / 66.67 x 100 = 50% markup.
What is a good markup percentage?
Typical markups vary by industry. Grocery stores often use 5-25%, electronics retailers use 5-20%, clothing stores use 50-100%, restaurants mark up food by 200-300%, and jewelry retailers use 50-100%. The right markup depends on your overhead costs, market competition, product demand, and desired profit margin. Use this calculator to experiment with different markups and find what works for your business.
Can I use this calculator for services, not just products?
Yes. Enter your total cost of providing the service (labor, materials, overhead) as the cost price, and set your desired markup percentage. The calculator works the same way for services. For example, if a freelance project costs you $500 in time and expenses and you want a 75% markup, the calculator shows a $875 selling price with $375 profit and a 42.86% margin.