Markup Calculator

Calculate markup, selling price, and profit margins

📈

Markup Calculator

Calculate markup percentage, selling price, and profit. Enter cost and either markup percentage or selling price to compute the remaining values.

📈 Markup Details

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%
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Leave empty to calculate, or enter to find markup %

📊 Markup Results

Selling Price
$120.00
Profit
$40.00
Markup
50.00%
Margin
33.33%
Cost $80.00
Markup % 50.00%
Profit (Revenue − Cost) +$40.00
Selling Price $120.00
Profit Margin 33.33%
Markup: Percentage of profit relative to cost. (Profit ÷ Cost × 100)
Margin: Percentage of profit relative to selling price. (Profit ÷ Selling Price × 100)

📋 Markup vs Margin Comparison

Markup % Margin % Multiplier
15% 13.04% ×1.15
20% 16.67% ×1.20
25% 20.00% ×1.25
33.33% 25.00% ×1.33
50% 33.33% ×1.50
75% 42.86% ×1.75
100% 50.00% ×2.00
200% 66.67% ×3.00

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📚 Understanding Markup

What is Markup?

Markup is the difference between the selling price and the cost, expressed as a percentage of the cost. For example, a 50% markup on a $100 item means selling it for $150.

Markup vs Margin

Markup is based on cost, while margin is based on selling price. A 50% markup results in a 33.33% margin. They are different ways of expressing the same profit relationship.

Common Uses

Retailers and businesses use markup to set prices and ensure profitability. Markup percentages vary widely — groceries may use 5–25%, while jewelry can use 100–300%.

Markup Formulas

Markup calculation involves straightforward formulas relating cost, selling price, and markup percentage:

Markup % = ((Selling Price − Cost) ÷ Cost) × 100

Selling Price = Cost × (1 + Markup% ÷ 100)

Profit = Selling Price − Cost

Example: 60% Markup on $50

If a product costs $50 and you apply a 60% markup:

Selling Price = $50 × (1 + 60/100) = $50 × 1.60 = $80.00

Profit = $80.00 − $50.00 = $30.00

Margin = $30 ÷ $80 × 100 = 37.50%

You sell the item for $80. Your profit is $30, and your profit margin is 37.50%.

Converting Between Markup and Margin

Margin % = Markup % ÷ (100 + Markup%) × 100

Markup % = Margin % ÷ (100 − Margin%) × 100

Pricing Tips

  • Know your costs: Include all costs (materials, labor, overhead) when calculating markup to ensure true profitability.
  • Industry benchmarks: Research standard markups in your industry to remain competitive.
  • Consider perceived value: Higher markups may be justified for premium products, unique items, or convenience.
  • Factor in discounts: If you frequently offer sales or discounts, set initial markups high enough to maintain profitability.
  • Review regularly: Adjust markups as costs change, market conditions shift, or competition evolves.