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Markup Calculator

Calculate markup percentage, selling price, or cost from any two known values.

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Formula

Markup % = ((Selling Price - Cost) / Cost) × 100

Subtract cost from selling price, divide by cost, and multiply by 100.

Worked Example

Cost: $40, Selling Price: $60 Step 1: Markup = 60 - 40 = $20 Step 2: Markup % = 20 / 40 = 0.50 Step 3: 0.50 × 100 = 50% Result: 50% markup

What Is Markup?

Markup is the amount added to the cost of a product to determine its selling price. Expressed as a percentage of cost, markup tells you how much more than cost you are charging. A 50% markup on a $10 item means you sell it for $15. Markup is different from profit margin, which is calculated as a percentage of the selling price, not the cost.
  • Markup formula: Markup % = ((Selling Price - Cost) / Cost) x 100
  • A 100% markup means the selling price is double the cost
  • Markup is always a higher percentage than margin for the same transaction
  • Retail markups typically range from 50% to 100%, while luxury goods can exceed 200%

Understanding markup is essential for any business that sells physical products. It helps you set prices that cover costs, overhead, and desired profit while remaining competitive in your market.

You can also calculate changes using our Profit Margin Calculator, Pricing Calculator or Discount Calculator.

Frequently Asked Questions

How is markup different from margin?

Markup is based on cost, margin is based on selling price. A 100% markup equals a 50% margin.

How do I convert markup to margin?

Margin = Markup / (1 + Markup). For 50% markup: 0.50 / 1.50 = 33.3% margin.

What is a typical markup?

Varies by industry: retail 50-100%, food service 200-300%, software often 500%+.

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