Markup Calculator
Calculate selling prices, markup percentages, or cost prices. See profit margins instantly. Free for business owners.
Last updated: January 2025
Common markup presets:
Common Markup Percentages
Quick reference table showing common markups on a $100 cost item
| Markup | Cost | Profit | Margin | Selling Price |
|---|---|---|---|---|
| 25% | $100 | +$25 | 20.0% | $125 |
| 50% | $100 | +$50 | 33.3% | $150 |
| 75% | $100 | +$75 | 42.9% | $175 |
| 100% | $100 | +$100 | 50.0% | $200 |
| 150% | $100 | +$150 | 60.0% | $250 |
| 200% | $100 | +$200 | 66.7% | $300 |
Markup vs. Profit Margin
Markup
Percentage added to cost to get selling price.
Example: $50 profit on $100 cost = 50% markup
Profit Margin
Percentage of selling price that is profit.
Example: $50 profit on $150 selling = 33.3% margin
Typical Markup by Industry
Average markup percentages vary significantly across industries
Grocery Stores
5-25%
High volume, low margins
Clothing Retail
50-100%
Keystone pricing common
Restaurants
100-300%
Covers labor & overhead
Jewelry
100-300%
Luxury positioning
Electronics
15-40%
Competitive pricing
Professional Services
100-500%
Based on expertise value
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost price of a product to determine its selling price. It's expressed as a percentage of the cost. For example, a 50% markup on a $100 cost means adding $50, resulting in a $150 selling price.
What is the markup formula?
The markup formula is: Selling Price = Cost × (1 + Markup%/100). Alternatively, Markup Amount = Cost × (Markup%/100). To find markup percentage: Markup% = ((Selling Price - Cost) / Cost) × 100.
What is the difference between markup and margin?
Markup is calculated as a percentage of cost, while margin (profit margin) is calculated as a percentage of selling price. A 100% markup equals a 50% margin. They represent the same profit but from different perspectives.
How do I calculate a 50% markup?
To calculate a 50% markup, multiply the cost by 1.5 (or by 0.5 and add to cost). For example, 50% markup on $80 cost = $80 × 1.5 = $120 selling price, with $40 profit.
What is a good markup percentage?
Good markup varies by industry: Retail clothing typically uses 50-100%, restaurants 300%+ on drinks, grocery stores 5-25%, and professional services 100-300%. Consider competition and perceived value.
How do I convert markup to margin?
To convert markup to margin: Margin% = Markup% / (100 + Markup%) × 100. For example, 50% markup = 50/(100+50) × 100 = 33.3% margin. To convert margin to markup: Markup% = Margin% / (100 - Margin%) × 100.
What markup do I need for a 30% profit margin?
For a 30% profit margin, you need approximately 42.9% markup. Use the formula: Markup% = Margin% / (100 - Margin%) × 100 = 30 / 70 × 100 = 42.86%.
How do I calculate cost from selling price and markup?
To find cost from selling price and markup: Cost = Selling Price / (1 + Markup%/100). For example, if selling price is $150 with 50% markup: Cost = $150 / 1.5 = $100.
What is keystone pricing?
Keystone pricing is a 100% markup, meaning the selling price is double the cost. If an item costs $50, keystone pricing sets it at $100. This is common in retail and provides a 50% profit margin.
Should I use markup or margin for pricing?
Both are useful. Markup is easier for calculating selling prices from costs. Margin is better for analyzing profitability and comparing to industry benchmarks. Many businesses track both.
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