Markup Calculator
Calculate selling price and profit from a cost price and desired markup percentage, and see the equivalent profit margin for comparison.
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Selling Price = Cost × (1 + Markup %)
Results
Selling Price
$70.00
Profit
$20.00
Equivalent Profit Margin
28.57%
How Does the Markup Calculator Work?
Enter the cost price of a product and the markup percentage you want to apply. The calculator multiplies cost by (1 + markup ÷ 100) to get the selling price, and the difference between selling price and cost is your profit.
Markup vs. Margin: The Key Difference
Markup and margin are both expressed as percentages, but they measure different things, and confusing the two is one of the most common pricing mistakes. Markup is profit expressed as a percentage of the cost price. Margin is profit expressed as a percentage of the selling price. A 40% markup on a $50 cost gives a $70 selling price and $20 profit — but that same $20 profit on a $70 selling price is only a 28.6% margin, not 40%. The two numbers only converge at 0%; the higher the percentage, the further apart markup and margin become.
Example
A product costing $50 with a 40% markup sells for $50 × 1.40 = $70, generating $20 of profit. That $20 profit represents a 28.6% margin on the $70 selling price — a smaller number than the 40% markup, even though they describe the exact same transaction.
Common Use Cases
- Setting retail prices from wholesale or supplier cost.
- Standardizing pricing rules across a product catalog using a consistent markup percentage.
- Converting a target markup into the resulting margin to compare against industry margin benchmarks.
- Quickly quoting a sale price when only the cost and a desired markup are known.
FAQs
Should I price based on markup or margin?
Either works, but be clear about which one you're using — many retailers think in markup (easy to calculate from cost) while financial statements and profitability benchmarks are usually expressed as margin (percentage of revenue). This calculator shows both so you can see the relationship for any given pricing decision.
Why is margin always lower than markup for the same price?
Because margin divides profit by the larger selling price, while markup divides the same profit by the smaller cost price — dividing by a bigger number always produces a smaller percentage.
What markup should I use?
It varies widely by industry — retail markups commonly range from 20% to 100%+ depending on the product category, competition, and what customers are willing to pay. There's no universal correct number; it should cover your costs, desired margin, and market positioning.