Markup Calculator
Calculate markup percentage, profit, and selling price from your cost and desired margin.
Frequently Asked Questions
What is markup?
Markup is the percentage added to the cost of a product to arrive at the selling price. If something costs you $50 and you sell it for $75, your markup is 50%. It tells you how much more than cost you are charging.
What is the difference between markup and margin?
Markup is calculated based on cost (profit divided by cost). Margin is calculated based on selling price (profit divided by selling price). A 50% markup results in a 33.3% margin. They describe the same profit from different perspectives.
How do I calculate markup?
Subtract the cost from the selling price to get profit. Then divide that profit by the cost and multiply by 100. The formula is: Markup % = ((Selling Price - Cost) / Cost) x 100. For example, ($75 - $50) / $50 x 100 = 50% markup.
What is a good markup percentage?
It depends on your industry. Retail clothing often uses 50-100% markup. Grocery stores operate on 5-25%. Restaurants typically markup food 200-300%. The right markup covers your overhead costs, provides profit, and stays competitive in your market.