Markup Calculator

Markup is the profit on an item expressed as a percentage of its cost. The formula is markup% = (selling price - cost) / cost x 100. A $50 item sold for $100 has a $50 profit and a 100% markup, because that profit equals the full cost.

Markup divides profit by cost; margin divides profit by selling price. On the same transaction the two numbers always differ. A 100% markup equals a 50% margin: both describe a $50 profit on a $50 cost and a $100 sale. The calculator shows both so you can report whichever metric your business uses.

It varies widely by industry. Grocery stores often run 10 to 15%, restaurants around 60%, apparel 100 to 350%, and jewelry can exceed 500%. Higher overhead and slower inventory turnover generally push markups up. There is no universal right number; what matters is that markup covers all costs and leaves an acceptable net profit.

Multiply cost by (1 + markup% / 100). For a $40 cost with a 75% markup: $40 x 1.75 = $70 selling price, leaving $30 profit. Enter cost and markup percentage in the calculator and it solves for selling price and margin automatically.

Markup starts from cost, which is what a buyer sees first. You receive an invoice, apply your markup percentage, and you have a retail price. Margin is more useful in finance and reporting, where the question is what share of revenue remains as profit after the sale is rung up.