Markup Calculator
Calculate selling price, profit amount, and profit margin from your cost and markup percentage.
Essential for pricing products.
Markup is the percentage added to the cost of a product to determine its selling price. Margin is the profit as a percentage of the selling price. These two terms are frequently confused — they describe the same profit from opposite perspectives.
Markup formula:
Selling Price = Cost × (1 + Markup% / 100)
Profit = Selling Price − Cost
Markup% = (Profit / Cost) × 100
Margin formula:
Margin% = (Profit / Selling Price) × 100
Margin% = Markup% / (100 + Markup%) × 100
Markup% = Margin% / (100 − Margin%) × 100
Worked example:
A product costs $60 to produce. You apply a 40% markup.
Selling Price = $60 × 1.40 = $84
Profit = $84 − $60 = $24
Margin% = ($24 / $84) × 100 = 28.6%
So a 40% markup is only a 28.6% margin — very different numbers for the same transaction.
Markup vs. Margin comparison table:
| Markup % | Margin % |
|---|---|
| 10% | 9.1% |
| 25% | 20.0% |
| 50% | 33.3% |
| 100% | 50.0% |
| 200% | 66.7% |
Industry typical markups:
- Grocery retail: 10–30% markup
- Clothing / apparel: 100–300% markup
- Restaurants: 200–500% markup on food cost
- Software / SaaS: virtually unlimited (near-zero cost of goods)
Break-even point: To stay profitable, your markup must exceed all fixed and variable costs divided by units sold.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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