What is the difference between markup and margin?

Markup is based on cost: (Price - Cost) / Cost × 100. Margin is based on price: (Price - Cost) / Price × 100. A 50% markup equals a 33.3% margin.

How do I calculate selling price from cost and markup?

Selling Price = Cost × (1 + Markup% / 100). For example, a $20 item with 50% markup sells for $20 × 1.50 = $30.

What is a typical markup for retail?

Retail markup varies widely: grocery stores use 25-50%, clothing 100-300% (keystone or more), electronics 5-20%, and restaurants 200-400% on food.

Markup Calculator — Cost, Revenue & Margin

Calculate selling price, profit, and gross margin from your cost and markup percentage.

Markup vs. Margin: They're Not the Same

People mix these up constantly. Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. Same dollar amount of profit, different denominators, completely different numbers.

Buy a shirt for $20, sell it for $30. Your profit is $10. Markup = $10 / $20 = 50%. Margin = $10 / $30 = 33.3%. Same shirt, same $10 profit.

The Formula

        Selling Price = Cost × (1 + Markup% ÷ 100)

        Profit = Selling Price − Cost

        Margin% = Profit ÷ Selling Price × 100

Markup to Margin Conversion Table

Markup %	Margin %	Multiplier
15%	13.0%	1.15×
25%	20.0%	1.25×
50%	33.3%	1.50×
75%	42.9%	1.75×
100%	50.0%	2.00×
200%	66.7%	3.00×
300%	75.0%	4.00×

Common Markup Rates by Industry

There's no universal "correct" markup. It depends entirely on your industry, competition, and overhead costs:

Grocery stores: 25-50% markup on most items, lower on staples
Clothing retail: 100-300% (the term "keystone" refers to exactly 100%)
Electronics: 5-20%, razor-thin margins offset by volume
Restaurants: 200-400% on food, 400-600% on drinks
Jewelry: 100-400%, higher on fashion pieces

How to Use This Markup Calculator

Enter the cost price and selling price (or desired markup/margin percentage). The calculator converts between markup and margin and shows profit.

Formula & How It Works

Markup % = (Selling Price – Cost) / Cost × 100. Margin % = (Selling Price – Cost) / Selling Price × 100. Selling Price = Cost × (1 + Markup%).

Calculation Example

Cost $40, selling price $60: Markup = ($60-$40)/$40 = 50%. Margin = ($60-$40)/$60 = 33.3%. Same profit ($20) but markup and margin percentages differ.

Expert Tips

Markup and margin are not the same — a 50% markup equals only 33% margin. Retailers often use markup; financial analysts prefer margin. Always clarify which metric is being discussed.

Markup Calculator

Calculate from Markup %

Find Markup from Price

Markup vs. Margin: They're Not the Same

The Formula

Markup to Margin Conversion Table

Common Markup Rates by Industry

Frequently Asked Questions

Profit Margin

Discount Calculator

Break-Even Calculator

How to Use This Markup Calculator

Formula & How It Works

Calculation Example

Expert Tips