Markup Calculator
Calculate selling price from cost and markup percentage, and find your profit margin.
Cost price ($)
Markup (%)
Selling price
$70.00
Profit
$20.00
Gross margin
28.6%
Markup vs. margin: the critical difference
Markup is added on top of cost. Margin is a percentage of the selling price. Confusing the two is the most common pricing error in small business.
Markup = (Price β Cost) Γ· Cost Γ 100
Margin = (Price β Cost) Γ· Price Γ 100
Example: cost $50, price $80
Markup = 30 Γ· 50 Γ 100 = 60%
Margin = 30 Γ· 80 Γ 100 = 37.5%Markup to margin conversion
| Markup % | Margin % | Price on $100 cost |
|---|---|---|
| 10% | 9.1% | $110 |
| 25% | 20% | $125 |
| 50% | 33.3% | $150 |
| 100% | 50% | $200 |
| 200% | 66.7% | $300 |
Typical markups by industry
Grocery
5β15%
Electronics
10β30%
Clothing
100β300%
Restaurants
200β400%
Jewellery
50β200%
Software
1,000%+
Formula / How it works
Selling price = Cost Γ (1 + markup%/100) Gross margin = 1 β (cost Γ· selling price)