Markup Calculator
Turn a cost into a selling price, or find the markup and profit margin from a price you already charge — instantly, right in your browser.
Enter cost and markup % to see the selling price
Enter cost and selling price to see the markup %
Markup ↔ margin conversion table
| Markup % | Margin % |
|---|
Markup is profit divided by cost; margin is profit divided by selling price. The same profit always makes markup % higher than margin % — that's why a 100% markup is only a 50% margin.
Educational information only — not financial, accounting, or tax advice for pricing decisions.
All calculations run in your browser — nothing is sent to a server.
Markup vs. margin: two different percentages from the same profit
Markup and margin both start from the same profit figure — selling price minus cost — but they divide that profit by different numbers. Markup divides profit by cost, answering "how much did I add on top of what I paid?" Margin divides profit by selling price, answering "what share of the revenue is profit?" Because the selling price is always larger than the cost on a profitable sale, markup is always a bigger number than margin for the same transaction. Confusing the two is one of the most common — and costly — mistakes in small-business pricing: aiming for a "50% margin" but typing a 50% markup into a spreadsheet leaves real profit on the table.
The formulas
- Profit = selling price − cost
- Markup % = profit ÷ cost × 100
- Margin % = profit ÷ selling price × 100
- Selling price from cost + markup = cost × (1 + markup% ÷ 100)
Example 1 — pricing from cost. A product costs $40 to make. Apply a 25% markup: price = 40 × 1.25 = $50. Profit is $10, so markup is 10 ÷ 40 = 25% (as set), but margin is only 10 ÷ 50 = 20% — the classic 25%-markup-equals-20%-margin pair.
Example 2 — reverse-engineering from a price you already charge. You sell a $20-cost item for $30. Profit is $10. Markup = 10 ÷ 20 = 50%. Margin = 10 ÷ 30 = 33.3%. Same $10 profit, two different percentages depending on which number you divide by.
Example 3 — the 100% markup myth. Doubling the price (a 100% markup) is a common retail rule of thumb, but it converts to only a 50% margin — not 100%. Profit ($cost) ÷ price (2 × cost) is always exactly one-half at a 100% markup, no matter the cost.
Markup-to-margin conversion table
Because the relationship is fixed by the formula margin = markup ÷ (100 + markup) × 100, a few common markups always convert to the same margins:
| Markup % | Margin % |
|---|---|
| 10% | 9.1% |
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 200% | 66.7% |
| 300% | 75% |
The full interactive table above the fold covers more presets and lets you jump straight to that markup in the calculator.
Typical markup ranges by industry
There's no single "correct" markup — it depends on turnover, spoilage risk, competition, and how much service is bundled into the price. These are rough, commonly cited starting points, not rules:
| Industry | Typical markup |
|---|---|
| Grocery / supermarket | 10–25% |
| General retail / apparel | 50–100% |
| Restaurants (food cost) | 200–300% (25–33% food cost) |
| Furniture | 50–100% |
| Jewelry | 100–300%+ |
| Wholesale / distribution | 15–40% |
Common pricing mistakes
- Treating "markup" and "margin" as interchangeable in a spreadsheet formula — they aren't, and swapping them systematically under- or over-prices every item.
- Forgetting that margin has a ceiling of 100% (that would mean cost is $0), while markup has no upper limit — a very high markup can still be a modest margin.
- Not accounting for all costs in "cost" — packaging, shipping, payment processing fees, and returns all belong in the cost basis before applying a markup, or the real margin will be lower than the calculator shows.
Sources & further reading
- U.S. Small Business Administration — guidance on pricing, costs and managing business finances
- IRS Small Business & Self-Employed — cost of goods sold and business expense rules
- U.S. Bureau of Labor Statistics, Producer Price Indexes — wholesale price trends that shift your cost basis
- Khan Academy — percentage arithmetic behind markup and margin formulas
Frequently asked questions
What's the difference between markup and margin?
Markup is profit divided by cost, while margin is profit divided by selling price — the same profit produces two different percentages because the denominators differ. A product costing $20 and sold for $30 has $10 profit: markup is 10 ÷ 20 = 50%, but margin is 10 ÷ 30 = 33.3%. Markup is always higher than margin on a profitable sale because cost is smaller than the selling price. Mixing the two up is one of the most common pricing mistakes small businesses make.
How do I calculate a selling price from cost and a markup percentage?
Multiply the cost by 1 plus the markup as a decimal: selling price = cost × (1 + markup ÷ 100). For a $40 cost with a 25% markup, that's 40 × 1.25 = $50. Switch to the “Find selling price” tab, enter the cost and markup percentage, and the tool calculates the price, profit, and resulting margin percentage instantly.
Why does a 100% markup equal only a 50% margin?
A 100% markup means you doubled the cost to set the price, so profit equals cost. Margin measures that same profit against the larger selling price instead of the cost, so profit ÷ price = cost ÷ (2 × cost) = 50%. The conversion table on this page shows more examples, including the classic case: 25%, 50%, and 100% markup convert to 20%, 33%, and 50% margin.
Can I find my margin if I only know my cost and selling price?
Yes — switch to the “Find markup %” tab and enter the cost and the selling price you already charge. The calculator returns the profit per unit, the markup percentage, and the profit margin percentage in one step, so you don't need to rearrange the formulas yourself.
Is my cost and pricing data sent to a server?
No. This markup calculator runs entirely in your browser — the cost, price, and currency you enter never leave your device and nothing is uploaded or stored on a server. There's no sign-up and no tracking of your numbers, so you can price products or services with confidence.