Markup Percentage Calculator - Calculate Markup & Margin
Calculate markup percentage from cost and selling price. See equivalent margin percentage. Free markup calculator for retail and business.
Input Values
Your cost per unit
If you know your selling price
To calculate required selling price
To calculate required selling price
Results
Selling Price
$150.00
Markup Percentage
50.0%
Based on cost
Margin Percentage
33.3%
Based on price
Gross Profit
$50.00
Per unit
Understanding the Difference
Markup is calculated on cost: (Price - Cost) / Cost × 100
Margin is calculated on price: (Price - Cost) / Price × 100
A 50% markup equals a 33% margin.
Example
How to Use the Markup Percentage Calculator
This calculator helps you determine the right selling price for your products or services. Enter your cost and either your selling price OR your desired markup/margin percentage, and we'll calculate the rest.
Common Markup Percentages by Industry
| Industry | Typical Markup | Typical Margin |
|---|---|---|
| Retail Clothing | 50-100% | 33-50% |
| Grocery Stores | 10-15% | 9-13% |
| Restaurants | 200-300% | 67-75% |
| Jewelry | 100-200% | 50-67% |
| Wholesale | 15-30% | 13-23% |
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to the cost price to arrive at the selling price, calculated as (Selling Price - Cost) / Cost. Margin is the percentage of the selling price that is profit, calculated as (Selling Price - Cost) / Selling Price. For example, if an item costs $50 and sells for $100, the markup is 100% but the margin is only 50%.
How do you calculate markup percentage?
To calculate markup percentage, subtract the cost from the selling price, then divide the result by the cost and multiply by 100. The formula is: Markup % = ((Selling Price - Cost) / Cost) x 100. For instance, if your cost is $40 and your selling price is $60, your markup is ($60 - $40) / $40 x 100 = 50%.
What is a standard markup percentage by industry?
Standard markup varies significantly by industry. Grocery stores typically use 5-15% markup, clothing retail ranges from 50-100%, restaurants mark up food 200-400%, and jewelry can see markups of 100-300%. Service-based businesses often use even higher markups because their cost of goods is lower relative to labor costs.
When should I use markup vs margin?
Use markup when setting prices based on your costs, which is common in retail and wholesale. Use margin when analyzing profitability or comparing performance across products and businesses. Many retailers price using markup because it is simpler to apply to cost, but financial reports and investors typically focus on margin percentages.
What is the markup formula?
The markup formula is: Markup % = ((Selling Price - Cost) / Cost) x 100. You can also rearrange it to find the selling price: Selling Price = Cost x (1 + Markup % / 100). For example, if your cost is $25 and you want a 60% markup, your selling price would be $25 x 1.60 = $40.
Related Calculators
Margin from Markup Calculator
Convert any markup percentage to its equivalent profit margin instantly.
Profit & Loss Calculator
Calculate net profit, gross profit, and generate a full P&L statement.
Restaurant Profit Margin Calculator
Calculate food cost percentage, labor cost, and prime cost for restaurants.
Freelance Pricing Calculator
Determine optimal pricing for your freelance services based on costs and goals.