Calculate markup and selling price
Cost
$50.00
+60%
$30.00
Sell Price
$80.00
Markup %
60.0%
Profit Margin
37.5%
Markup = Profit ÷ Cost
$30.00 ÷ $50.00 = 60.0%
Margin = Profit ÷ Selling Price
$30.00 ÷ $80.00 = 37.5%
Markup = (Selling Price - Cost) ÷ Cost × 100. It's the % added to cost for profit. Example: $100 cost, $150 price = ($150-$100)/$100 × 100 = 50% markup. To find price: Cost × (1 + Markup%).
| Cost | Markup % | Profit | Selling Price |
|---|---|---|---|
| $100 | 25% | $25 | $125 |
| $100 | 50% | $50 | $150 |
| $100 | 100% | $100 | $200 |
| $100 | 150% | $150 | $250 |
Markup = Profit ÷ Cost. Margin = Profit ÷ Price. Same profit, different denominators! 50% markup ≠ 50% margin. 50% markup = 33.3% margin. 100% markup = 50% margin. Margin is always lower.
| Cost | Price | Profit | Markup % | Margin % |
|---|---|---|---|---|
| $100 | $125 | $25 | 25% | 20% |
| $100 | $150 | $50 | 50% | 33.3% |
| $100 | $200 | $100 | 100% | 50% |
| $100 | $300 | $200 | 200% | 66.7% |
Markup to Margin: Margin = Markup ÷ (100 + Markup). Margin to Markup: Markup = Margin ÷ (100 - Margin). Example: 50% markup = 50÷150 = 33.3% margin. 40% margin = 40÷60 = 66.7% markup.
| Markup % | Margin % | Conversion |
|---|---|---|
| 20% | 16.7% | 20÷120 = 0.167 |
| 33.3% | 25% | 33.3÷133.3 = 0.25 |
| 50% | 33.3% | 50÷150 = 0.333 |
| 100% | 50% | 100÷200 = 0.50 |
Industry averages: Grocery 10-30%, Apparel 50-100%, Electronics 20-50%, Jewelry 100-300%, Restaurants 200-400% (on food). Higher markups offset higher costs (returns, spoilage, expertise).
| Industry | Typical Markup | Typical Margin | Why |
|---|---|---|---|
| Grocery | 10-30% | 10-23% | High volume, low margin |
| Apparel | 50-100% | 33-50% | Returns, seasons, fashion |
| Electronics | 20-50% | 17-33% | Competition, obsolescence |
| Jewelry | 100-300% | 50-75% | Expertise, custom work |
| Restaurants (food) | 200-400% | 67-80% | Labor, rent, waste |
| Software/SaaS | 80-400% | 45-80% | R&D, support, updates |
Selling Price = Cost × (1 + Markup%). For 40% markup on $75 cost: $75 × 1.40 = $105. For target price, work backward: Cost = Price ÷ (1 + Markup%).
Keystone = 100% markup (double the cost). $50 cost → $100 price. Simple to calculate, common in retail. May be too low for low-volume items or too high for competitive markets. Many retailers use as starting point.
Inputs
Result
Markup Amount = $50 x (60/100) = $30. Selling Price = $50 + $30 = $80. Profit Margin = ($30 / $80) x 100 = 37.5%. A 60% markup results in only a 37.5% profit margin.
Inputs
Result
Markup Amount = $75 x (100/100) = $75. Selling Price = $75 + $75 = $150 (double the cost). Profit Margin = ($75 / $150) x 100 = 50%. Keystone pricing (100% markup) always yields a 50% profit margin.
Selling Price = Cost + (Cost x Markup% / 100)Calculates the selling price by adding the markup amount to the cost.
Where:
Cost= The cost to purchase or produce the itemMarkup%= The percentage to add on top of costMarkup% = ((Selling Price - Cost) / Cost) x 100Calculates the markup percentage when you know the cost and selling price.
Where:
Selling Price= The price the customer paysCost= The cost to purchase or produce the itemProfit Margin = ((Selling Price - Cost) / Selling Price) x 100The profit as a percentage of the selling price (margin is always lower than markup for the same profit).
Where:
Selling Price= The price the customer paysCost= The cost to purchase or produce the itemPricing tools
Last Updated: Feb 12, 2026
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