Markup calculator
Enter your cost and markup percentage to get the selling price, the profit per unit and the resulting profit margin.
Markup → price
Example: $40 cost with 50% markup
Markup vs margin — not the same thing
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 50% markup is only a 33.3% margin. Confusing the two is one of the most expensive mistakes in pricing.
Example: $40 cost with 50% markup → $60 price, $20 profit, 33.33% margin.
Markup to margin conversion
| Markup | Equivalent margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 33.33% | 25% |
| 50% | 33.33% |
| 100% | 50% |
| 200% | 66.67% |
| 300% | 75% |
Examples
Frequently asked questions
What is the difference between markup and margin?
Markup divides profit by cost; margin divides profit by selling price. The same dollar profit gives a higher markup number than margin number.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100. A 50% markup is 50 ÷ 150 × 100 = 33.33% margin.
How do I convert margin to markup?
Markup = margin ÷ (100 − margin) × 100. A 25% margin is 25 ÷ 75 × 100 = 33.33% markup.
What markup should I use?
It depends on your industry: groceries often run 5–25%, clothing 100–350%, restaurants 300%+ on food cost. Work backwards from the margin your business needs.
What is keystone pricing?
A traditional retail rule of thumb: a 100% markup, i.e. doubling the cost, which yields a 50% margin.