Markup Calculator
Calculate markup percentage, profit margin, and selling price from cost. Convert between markup and margin instantly.
Calculation Mode
Input Values
Common Markup & Margin Conversions
| Markup % | Margin % | Cost ($100) | Selling Price |
|---|---|---|---|
| 25.00% | 20.00% | $100.00 | $125.00 |
| 33.33% | 25.00% | $100.00 | $133.33 |
| 50.00% | 33.33% | $100.00 | $150.00 |
| 75.00% | 42.86% | $100.00 | $175.00 |
| 100.00% | 50.00% | $100.00 | $200.00 |
| 150.00% | 60.00% | $100.00 | $250.00 |
| 200.00% | 66.67% | $100.00 | $300.00 |
Understanding Markup vs Margin
Markup and margin are two ways of expressing the profit on a product, but they use different base values for their calculations.
Markup Formula
Markup % = ((Selling Price - Cost) / Cost) x 100
Markup is based on the cost of the item. A 50% markup on a $100 cost item means the selling price is $150.
Margin Formula
Margin % = ((Selling Price - Cost) / Selling Price) x 100
Margin is based on the selling price. A $100 cost item sold for $150 has a margin of 33.33%.
How to use this tool: Select a calculation mode above based on the values you know. Enter your values and the calculator will instantly show all related figures including selling price, cost, markup percentage, profit margin, and total profit.
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Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to the cost price to get the selling price, calculated as ((Selling Price - Cost) / Cost) x 100. Margin is the percentage of the selling price that is profit, calculated as ((Selling Price - Cost) / Selling Price) x 100. For example, a product costing $100 sold for $150 has a 50% markup but only a 33.33% margin.
How do I convert markup to margin?
To convert markup to margin, use the formula: Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) gives a margin of 0.50 / 1.50 = 0.3333, or 33.33%. Conversely, to convert margin to markup: Markup = Margin / (1 - Margin).
What is a good markup percentage?
A good markup percentage varies by industry. Retail clothing often uses 50-100% markup, restaurants typically use 200-300% on food items, and technology products may use 20-50%. The right markup depends on your operating costs, competition, and target profit margin.
Why is markup always higher than margin?
Markup is always higher than margin because they use different denominators. Markup divides profit by the smaller number (cost), while margin divides profit by the larger number (selling price). Since cost is always less than or equal to selling price, the markup percentage will always be greater than or equal to the margin percentage.