Markup Calculator
Calculate selling price, markup percentage, and profit margin. Understand the difference between markup and margin for better business pricing decisions.
Percentage added to cost
0.0% markup = 0.0% margin
For every $0.00 sold, $0.00 is profit
Quick Answer: Markup vs Margin
Markup = % added to cost. Margin = % of selling price that's profit.
Dr. Snezana Lawrence
Mathematical Historian
15+ years experience
PhD from Yale University. Published mathematical historian ensuring precision in all calculations.
Education
PhD in Mathematical History - Yale University
Table of Contents
How to Use This Markup Calculator
Our markup calculator offers three different calculation modes to help you price products and analyze profitability:
Cost + Markup% Mode
Enter your cost price and desired markup percentage. The calculator will compute the selling price, profit amount, and equivalent margin percentage.
Cost + Margin% Mode
Enter your cost price and target profit margin. The calculator will determine the required selling price and equivalent markup percentage.
Cost + Selling Price Mode
Enter both your cost and selling prices. The calculator will reveal your markup percentage, margin percentage, and profit amount.
Understanding Markup vs Margin
While both measure profitability, markup and margin use different reference points. Understanding this difference is crucial for pricing strategy.
Markup
Markup is the percentage added to the cost to arrive at the selling price.
Example: $40 profit on $60 cost
= ($40 / $60) × 100 = 66.67%
Margin
Margin is the percentage of the selling price that is profit.
Example: $40 profit on $100 sale
= ($40 / $100) × 100 = 40%
Key Insight: Markup is always higher than margin for the same product. A 100% markup equals a 50% margin. The higher the markup, the bigger the gap between the two percentages.
Markup to Margin Conversion Table
Quick reference showing how markup and margin percentages relate:
| Markup % | Margin % | Cost $60 → Sells For | Profit |
|---|---|---|---|
| 25.00% | 20.00% | $75.00 | $15.00 |
| 33.33% | 25.00% | $80.00 | $20.00 |
| 50.00% | 33.33% | $90.00 | $30.00 |
| 100.00% | 50.00% | $120.00 | $60.00 |
| 200.00% | 66.67% | $180.00 | $120.00 |
| 300.00% | 75.00% | $240.00 | $180.00 |
Markup and Margin Formulas
Markup to Margin
Margin = Markup / (100 + Markup) × 100Example: 50% markup → 50/(100+50)×100 = 33.33% margin
Margin to Markup
Markup = Margin / (100 - Margin) × 100Example: 40% margin → 40/(100-40)×100 = 66.67% markup
Selling Price from Markup
Selling Price = Cost × (1 + Markup/100)Example: $60 cost, 50% markup → $60 × 1.5 = $90
Selling Price from Margin
Selling Price = Cost / (1 - Margin/100)Example: $60 cost, 40% margin → $60 / 0.6 = $100
Industry Standard Markups
Different industries use different markup standards based on their overhead costs, competition, and market conditions.
Grocery Stores
10-30%
Low margins, high volume
Clothing Retail
50-100%
Varies by brand and style
Electronics
20-40%
Competitive market
Jewelry
100-300%
High perceived value
Restaurants (Food)
200-300%
Covers labor and overhead
Furniture
80-150%
Showroom and delivery costs
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to the cost to get the selling price (based on cost). Margin is the percentage of the selling price that is profit (based on selling price). A 50% markup equals a 33.33% margin.
How do I calculate markup percentage?
Markup % = ((Selling Price - Cost) / Cost) × 100. For example, if you buy for $60 and sell for $100: Markup = (($100 - $60) / $60) × 100 = 66.67% markup.
What markup do retailers typically use?
Markup varies by industry. Grocery stores often use 10-30%, clothing retail 50-100%, jewelry 100-300%, and restaurants 200-300% on food items. The right markup depends on overhead costs, competition, and target profit margins.
Which is more important: markup or margin?
Both are useful but for different purposes. Use markup when pricing products (adding to cost). Use margin when analyzing profitability (percentage of revenue that's profit). Investors and analysts typically focus on margin.
How do I convert markup to margin?
Use the formula: Margin = Markup / (100 + Markup) × 100. For example, 50% markup: Margin = 50 / (100 + 50) × 100 = 50 / 150 × 100 = 33.33% margin.
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Dr. Snezana Lawrence
Mathematical Historian | PhD from Yale
Dr. Lawrence is a published mathematical historian with a PhD from Yale University. She ensures mathematical precision and accuracy in all our calculations, conversions, and academic score calculators. Her expertise spans computational mathematics and educational assessment.
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