Markup Calculator
Calculate optimal selling prices, profit margins, and markup percentages for your products and services.
Calculate Markup & Margin
Enter your cost and pricing information to calculate markup and profit margins
Pricing Result
Enter pricing details
to see markup results
Markup vs Margin: Understanding the Difference
Markup Percentage
Formula:
Markup % = [(Selling Price - Cost Price) / Cost Price] × 100
- Based on cost price
- Common in retail and wholesale
- Easy to calculate from cost
- Can be misleading at high percentages
Profit Margin
Formula:
Margin % = [(Selling Price - Cost Price) / Selling Price] × 100
- Based on selling price
- Standard in financial reporting
- Better reflects true profitability
- Harder to calculate from cost
Industry Markup Standards
Retail
Restaurant
Service
Manufacturing
Markup Calculator FAQs
What's the difference between markup and margin?
Markup is calculated as a percentage of the cost price, while margin is calculated as a percentage of the selling price. A 50% markup equals a 33.33% margin.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). For example, 50% markup = 0.50 / (1 + 0.50) = 0.3333 = 33.33% margin.
What is a good markup percentage?
It varies by industry. Retail typically uses 50-100%, wholesale 20-50%, manufacturing 30-60%, and services 100-200% markup.
Should I use markup or margin for pricing?
Markup is easier for quick calculations from cost, while margin gives a better picture of true profitability. Many businesses use both depending on the situation.
How do I account for overhead in markup?
Include a portion of your fixed overhead costs in your cost calculation, or add an additional percentage to cover overhead expenses beyond direct costs.