Markup Calculator
Set the right selling price from cost, or work backwards from price to markup — with margin conversion built in so you never confuse the two.
Your unit cost — what you paid to acquire or produce one item.
The percentage above cost you want to add to set the selling price.
Result
Selling Price
$70.00
Cost × (1 + Markup %)
Profit per unit
$20.00
Selling Price − Cost
Markup %
40.00%
Margin %
28.57%
⚠️ Markup ≠ Margin
Markup is profit / cost. Margin is profit / selling price. A 100% markup is only a 50% margin. Confusing them is the #1 pricing mistake.
Markup vs margin — the difference that costs people money
Markup and margin both describe profit as a percentage, but they use different denominators. Markup divides profit by cost. Margin divides profit by selling price. The two numbers are always different, and they get further apart as profitability grows.
| Cost | Selling Price | Profit | Markup | Margin |
|---|---|---|---|---|
| $10 | $12 | $2 | 20% | 17% |
| $10 | $15 | $5 | 50% | 33% |
| $10 | $20 | $10 | 100% | 50% |
| $10 | $50 | $40 | 400% | 80% |
The classic mistake: a wholesale supplier says "just add 30% markup" and the retailer plans for a 30% margin. They're actually getting a 23% margin and short their financial plan by 7 percentage points on every sale.
How to calculate markup
Markup % = ((Selling Price − Cost) / Cost) × 100
How to calculate selling price from markup
Selling Price = Cost × (1 + Markup %)
Frequently asked questions
What's the difference between markup and margin?▼
Markup is profit divided by cost. Margin is profit divided by selling price. A $10 item sold for $15 has a 50% markup but a 33% margin. They're not the same number, and confusing them leads to underpricing.
How do I convert markup to margin?▼
Margin = Markup / (1 + Markup). So 50% markup = 50% / 150% = 33% margin. 100% markup = 100% / 200% = 50% margin. The calculator does both conversions automatically.
What's a typical markup?▼
Highly industry-dependent. Restaurants run 200-300% on drinks, 100-150% on food. Apparel retail averages 50-100%. Electronics retail is often 10-30%. Wholesale-to-retail is typically 50-100% markup.
Should I markup based on cost or value?▼
For commodity items where customers comparison-shop, cost-plus markup is standard. For differentiated products, value-based pricing usually beats cost-plus — you set the price by what customers will pay, then work backwards to see if it covers cost.