How do I calculate markup?

Divide the profit by the cost and multiply by 100. Example: cost $40, price $50 → (50 − 40) ÷ 40 × 100 = 25% markup.

How do I add markup to a cost?

Multiply the cost by (1 + markup ÷ 100). Example: $40 with a 50% markup = 40 × 1.50 = $60.

What is the difference between markup and margin?

Markup measures profit against cost; margin measures the same profit against the selling price. A $40 cost sold at $50 is a 25% markup but a 20% margin, because 10 ÷ 40 = 25% and 10 ÷ 50 = 20%.

How do I convert markup to margin?

Margin = markup ÷ (100 + markup) × 100. A 50% markup is a 33.33% margin.

How do I convert margin to markup?

Markup = margin ÷ (100 − margin) × 100. A 40% margin needs a 66.67% markup.

What markup should I use?

Work backwards from the margin your business needs after all costs, then use the margin-to-markup conversion above to set the price. Retail markups commonly sit between 50% and 100%, but the right number depends on your costs, competition and volume.

Percentage Calculator / Markup calculator

Markup Calculator

Turn a cost into a selling price, find the markup percentage between any cost and price, and convert between markup and profit margin. Free, ad-free, and every answer updates as you type.

Price and markup

Add markup to a cost

Costplus% markup

60 · profit 20

Markup percentage from cost and price

Costsells for

25% markup

Markup and margin

Markup to margin

A markup of%is a margin of

33.33% margin

Margin to markup

A margin of%needs a markup of

66.67% markup

Markup vs. margin

Markup and margin describe the same profit from two different angles. Markup compares profit to what you paid; margin compares it to what the customer paid. Because the selling price is always the larger number, the margin percentage is always smaller than the markup percentage.

Markup

(price − cost) ÷ cost × 100

Cost $40, price $50 → 10 ÷ 40 × 100 = 25% markup. Use it when you price up from cost.

Margin

(price − cost) ÷ price × 100

Cost $40, price $50 → 10 ÷ 50 × 100 = 20% margin. Use it when you report profitability.

Markup to margin at a glance

10% markup9.09% margin

20% markup16.67% margin

25% markup20% margin

30% markup23.08% margin

40% markup28.57% margin

50% markup33.33% margin

60% markup37.5% margin

75% markup42.86% margin

100% markup50% margin

How to calculate markup step by step

A worked example using a $40 cost sold for $50. The calculator above does this instantly, but here is the arithmetic behind it.

1. Find the gross profit
$50 price − $40 cost = $10 profit
2. Divide profit by cost
10 ÷ 40 = 0.25
3. Multiply by 100
0.25 × 100 = 25% markup
4. Sanity-check the margin
10 ÷ 50 × 100 = 20% margin

Going the other way — from cost to price — multiply the cost by one plus the markup as a decimal: a $40 cost with a 50% markup sells for 40 × 1.50 = $60.

Common markup answers

The markup questions people look up most, already worked out. Change any number in the calculators above for your own figures.

$10 cost with a 50% markup sells for$15.00

$25 cost with a 40% markup sells for$35.00

$50 cost with a 100% markup sells for$100.00

$100 cost with a 30% markup sells for$130.00

$40 cost sold at $50 is a markup of25%

$60 cost sold at $90 is a markup of50%

$12 cost sold at $30 is a markup of150%

$200 cost sold at $250 is a markup of25%

A 50% markup equals a margin of33.33%

A 30% margin needs a markup of42.86%

A 50% margin needs a markup of100%

Keystone pricing (double the cost) is100% markup

Typical markups by industry

Rough ranges to sanity-check a price, not a rule. Your own costs, competition and volume decide the right number — work backwards from the margin your business needs.

Grocery and food retail10–25%

Clothing and apparel retail100–300%

Restaurant food200–300%

Restaurant drinks300–500%

Furniture and homeware40–100%

Jewellery100–300%

Electronics and appliances5–25%

Trades and construction materials10–30%

Markup questions people ask

How do I calculate markup?: Divide the profit by the cost and multiply by 100. Example: cost $40, price $50 → (50 − 40) ÷ 40 × 100 = 25% markup.
How do I add markup to a cost?: Multiply the cost by (1 + markup ÷ 100). Example: $40 with a 50% markup = 40 × 1.50 = $60.
What is the difference between markup and margin?: Markup measures profit against cost; margin measures the same profit against the selling price. A $40 cost sold at $50 is a 25% markup but a 20% margin, because 10 ÷ 40 = 25% and 10 ÷ 50 = 20%.
How do I convert markup to margin?: Margin = markup ÷ (100 + markup) × 100. A 50% markup is a 33.33% margin.
How do I convert margin to markup?: Markup = margin ÷ (100 − margin) × 100. A 40% margin needs a 66.67% markup.
What markup should I use?: Work backwards from the margin your business needs after all costs, then use the margin-to-markup conversion above to set the price. Retail markups commonly sit between 50% and 100%, but the right number depends on your costs, competition and volume.

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