Markup Calculator
Enter the cost of an item and your target markup percentage to find the selling price and profit.
| Cost | |
| Profit (markup amount) | |
| Selling price | |
| Profit margin |
How to calculate markup
Markup is the amount added on top of your cost, expressed as a percentage of that cost. The formula is: Selling price = Cost × (1 + Markup ÷ 100). The profit is simply the selling price minus the cost, which equals Cost × Markup ÷ 100.
For example, if an item costs $40 and you want a 50% markup, the profit is 40 × 50 ÷ 100 = $20, and the selling price is 40 + 20 = $60.
Markup is not the same as margin. Margin measures profit as a percentage of the selling price, not the cost. In the example above, the $20 profit on a $60 sale is a 33.33% margin even though the markup is 50%. Markup is always a larger number than margin for the same sale.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit divided by cost; margin is profit divided by selling price. A 50% markup equals a 33.33% margin, and a 100% markup equals a 50% margin.
How do I convert markup to margin?
Margin % = Markup ÷ (100 + Markup) × 100. For a 25% markup, that is 25 ÷ 125 × 100 = 20% margin.
What is a typical markup?
It varies widely by industry. Grocery items often carry 10–30% markup, clothing and retail goods commonly use 50–100% (keystone pricing), and restaurants may mark up food 200–300% over ingredient cost.