Markup Calculator
Calculate the selling price, markup percentage, or cost from any two known values. Convert between markup and profit margin instantly.
Results
Markup vs Margin Quick Reference
How to Use This Tool
- Enter the cost you pay to acquire or produce one unit of the product.
- Enter your desired markup percentage — the amount you want to add on top of cost.
- Read off the resulting selling price and profit per unit.
- Check the equivalent profit margin percentage so you know what share of the selling price is profit.
- Use the quick reference table to compare common markup percentages against their margin equivalents.
Formula & How It Works
Selling Price
Selling Price = Cost × (1 + Markup% / 100)The markup percentage is added on top of cost to determine what you charge.
Profit per Unit
Profit = Selling Price − CostThe dollar amount earned on each unit sold.
Equivalent Profit Margin
Margin% = (Selling Price − Cost) ÷ Selling Price × 100Markup is profit expressed as a percentage of cost; margin is the same profit expressed as a percentage of the selling price, so the two numbers are always different.
Practical Examples & Common Use Cases
Retail clothing item
A shirt costs $40 to source. Applying a 50% markup: Selling Price = $40 × 1.50 = $60. Profit per unit = $20, which works out to a 33.3% profit margin.
Restaurant menu item
A dish costs $6 in ingredients. Restaurants often use a 300% markup: Selling Price = $6 × 4.00 = $24. Profit per plate = $18, a 75% profit margin.
Wholesale electronics reseller
A gadget costs $120 wholesale. A 25% markup gives Selling Price = $120 × 1.25 = $150. Profit per unit = $30, equal to a 20% profit margin — illustrating how a modest markup translates to a much smaller margin.
Frequently Asked Questions
It varies by industry. Retail clothing often uses 50-100% markup, grocery 25-50%, restaurants 200-300% on food, and jewelry 50-100%.
Margin = Markup / (100 + Markup) × 100. For example, a 50% markup = 50/150 × 100 = 33.3% margin.
Use markup when setting prices from cost. Use margin when analyzing profitability from revenue. Both describe the same profit differently.
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