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.