Markup Calculator
Formula
Selling Price = Cost × (1 + Markup% ÷ 100)
Markup is the percentage added to the cost to get the selling price. A 50% markup on a $50 item means selling it for $75, with $25 profit.
How to use
- Enter what you paid in the Cost field.
- Enter the percentage to add in the Markup (%) field.
- Read the resulting Selling Price and Profit.
Example
With a Cost of $50 and a 50% markup, the selling price is $50 × 1.5 = $75, giving $25 of profit.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is based on cost (profit ÷ cost). Margin is based on selling price (profit ÷ selling price). A 50% markup = 33.3% margin.
What is a good markup?
It varies by industry. Retail clothing: 50-100%. Electronics: 5-20%. Restaurants: 200-300% on food.
Can markup be more than 100%?
Yes, markups above 100% are common in industries with high overhead or perceived value, such as restaurants, jewelry, and specialty retail. A 200% markup means you sell an item for three times its cost: a $10 item would sell for $30. There is no upper limit on markup, though competition and what customers will pay usually set practical ceilings.
Why do retailers prefer thinking in markup instead of margin?
Markup is based on the cost they already know when buying inventory, so it is a quick way to set a price by adding a fixed percentage on top. Margin, by contrast, is calculated from the selling price and is more useful for understanding profitability. Many retailers mark up to set prices, then track margin to measure how much they actually keep.