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Markup Calculator
Calculate selling price from cost and markup percentage, find what markup you are applying, or convert between markup percentage and profit margin. Essential for retail pricing, wholesale buying, and understanding the difference between markup and margin.
Markup is the percentage added to cost to arrive at the selling price. Margin is profit as a percentage of the selling price. These two different measurements of the same profit are frequently confused — a 50% markup does NOT equal a 50% margin. This calculator handles all three calculations with clear explanations.
The most common pricing confusion in business: markup and margin are not the same number, even though both measure the same dollar amount of profit. Markup is profit as a percentage of COST. Margin is profit as a percentage of SELLING PRICE. For the same product, markup % is always higher than margin %.
Markup %
Equivalent Margin %
Example
10%
9.1%
Cost: $100, Price: $110
20%
16.7%
Cost: $100, Price: $120
25%
20.0%
Cost: $100, Price: $125
33.3%
25.0%
Cost: $100, Price: $133.33
50%
33.3%
Cost: $100, Price: $150
100%
50.0%
Cost: $100, Price: $200
200%
66.7%
Cost: $100, Price: $300
Industry Standard Markups
Industry
Typical Markup
Notes
Retail clothing
100-300%
Keystone pricing (2×) is minimum
Jewelry
50-300%
High markup for perceived value
Electronics
5-25%
Low margin, high volume
Grocery
15-40%
Produce: 40%+, packaged: 15-25%
Restaurant food
200-350%
Food cost 25-33% of menu price
Software/SaaS
500-1000%
Near-zero COGS on digital goods
Prescription drugs
200-1000%
Widely variable
Frequently Asked Questions
Markup = (Selling Price - Cost) / Cost × 100. Profit Margin = (Selling Price - Cost) / Selling Price × 100. A product costing $50 sold for $100: Markup = $50/$50 = 100%. Margin = $50/$100 = 50%. Same profit ($50), different percentages. Markup is based on cost; margin is based on revenue.
Selling Price = Cost × (1 + Markup/100). At 50% markup on a $30 cost: $30 × 1.50 = $45. At 100% markup: $30 × 2.00 = $60. At 200% markup: $30 × 3.00 = $90. Remember: 100% markup means doubling the price (not a 100% margin — that would mean giving the product away free).
Markup should cover: cost of goods, overhead allocated per unit, desired net profit margin, and competitive pricing pressure. Minimum viable markup = (Fixed costs / Units sold + Variable cost per unit) / Cost per unit. As a starting point: check industry averages, price-test with customers, and ensure your markup results in a net profit margin above your cost of capital.
Keystone pricing means marking up items by 100% — doubling the wholesale cost. A product costing $25 wholesale sells for $50 retail (keystone). This 100% markup = 50% gross margin. Keystone has been a retail standard for decades, though increasing competition (especially from e-commerce) has compressed margins in many categories below keystone levels.
Varies significantly by product category. Minimum for profitability: markup must exceed (overhead costs / units sold) / product cost. General retail: 50-100% markup (25-50% margin). Boutique/specialty: 100-200%+. Commodity goods (low differentiation): competitive pressure limits markup to 10-30%. Service businesses often apply 200-400% markup on parts and materials.