Markup Calculator — Cost, Markup % & Selling Price

Markup and margin are the two most-confused numbers in retail and manufacturing. They look similar but answer different questions: markup is on cost, margin is on sale price. A 100% markup is only a 50% margin. This calculator does both at once so you stop conflating them.

Markup Calculator

Convert between cost, markup %, and selling price — and see margin in one view.

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Markup50%
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Markup Breakdown

Selling Price–
Markup Amount–
Markup %–
Profit Margin %–
Cost-to-Price Multiplier–

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Markup vs Margin — Why It Matters

Markup % = (Profit / Cost) × 100. It’s how much you add to cost to set the price.

Margin % = (Profit / Selling Price) × 100. It’s the slice of revenue that becomes profit.

Confusing them is how businesses go bust. “We mark up 30%” sounds like 30% margin — but it’s actually only 23% margin. Over 1,000 sales, that’s a 7% revenue gap that disappears into nothing.

The Formulas

Selling Price = Cost × (1 + Markup %)
Markup % = (Selling Price − Cost) / Cost
Margin % = (Selling Price − Cost) / Selling Price

Worked Example

Example: Cost $100, markup 50% → Selling price = $150. Markup amount = $50. Margin = $50 / $150 = 33.3%. So a 50% markup is only a 33.3% margin.
Example: Cost $100, markup 100% (a ‘keystone’ pricing) → Selling price = $200. Margin = $100 / $200 = 50%. The classic retail rule of thumb.

Industry Markup Benchmarks

  • Grocery / supermarket: 5–25% markup (1–3% margin overall).
  • Apparel retail: 100–300% markup (50–75% margin).
  • Restaurants (food): 200–400% markup on raw cost (60–80% gross margin).
  • Restaurants (drinks): 400–600% markup (margins of 75–85%).
  • SaaS: 500–2000% markup over hosting cost (90%+ gross margin).
  • Construction / contractors: 15–30% markup over materials.

Frequently Asked Questions

Should I price by markup or margin?▾
Margin is what financiers and management care about (revenue → profit). Markup is what suppliers and procurement use (cost → price). Most retailers track both — markup for buying, margin for selling.
How do I price a new product with no benchmark?▾
Three approaches: (1) cost-plus markup (set a target margin); (2) competitive pricing (look at rivals); (3) value-based (charge what the customer values it at). Most successful businesses combine all three.
Is high markup always better?▾
No — high markup with low volume often loses to low markup with high volume. Walmart has thin markup but enormous volume. Tiffany has fat markup but tiny volume. Both work; lukewarm middle doesn’t.
Do markup and margin behave differently in inflation?▾
Yes. If you keep markup % constant during cost inflation, margin stays the same. If you keep selling price constant, both compress. In high-inflation periods, monitor margin (not markup) to keep profitability stable.

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