Free Markup Calculator

Markup is how much you add on top of cost to arrive at the selling price. This tool converts a cost and markup % into a selling price — and shows you the equivalent margin so you never confuse the two again.

Results

Cost price$100.00
Markup50.00%
Profit per unit$50.00
Equivalent margin33.33%
Selling price$150.00

Margin vs Markup — side by side

Same profit, different denominator. Read the row that matches your markup.

Markup %Equivalent margin %Example: $100.00 cost →
10%9.1%$110.00
25%20.0%$125.00
50%33.3%$150.00
75%42.9%$175.00
100%50.0%$200.00
150%60.0%$250.00
200%66.7%$300.00
300%75.0%$400.00

What the Markup Calculator does

Markup is the amount added to an item's cost, expressed as a percentage of that cost, to arrive at the selling price. It is the mirror image of profit margin: markup is measured against cost, margin is measured against selling price, and the two numbers are never equal except at 0%.

Methodology and formula

Selling Price = Cost x (1 + Markup / 100); equivalent Margin % = Markup / (1 + Markup) x 100.

Worked example

Inputs
Cost 50; markup 60%.
Result
Selling price 80; profit 30; equivalent margin 37.5%.

A trader thinking in markup sees '60% on cost' and feels comfortable, but the equivalent margin — the number a lender or investor would ask for — is only 37.5%. Confusing the two is the most common pricing mistake in retail and wholesale.

When to use this tool

Use this tool when you think in cost-plus terms, as retail buyers, wholesalers and manufacturers typically do. Use the Profit Margin Calculator when you need the revenue-based percentage that investors and P&L statements expect, and Product Pricing Calculator when you need to build the cost up from materials and labour first.

About the Markup Calculator

The markup formula

Selling Price = Cost × (1 + Markup / 100). If a product costs $50 and you mark it up 60%, the selling price is $50 × 1.60 = $80, and your profit is $30.

Markup vs margin — the one table every founder needs

Every markup value has a smaller equivalent margin because the denominator changes. A 25% markup is a 20% margin; a 100% markup is a 50% margin; a 300% markup is a 75% margin. This tool shows the equivalent side by side so you always price against the right number.

When to think in markup vs margin

Retail buyers, wholesale distributors and manufacturing quote in markup because they start from cost. Finance teams, investors and P&L reporting always use margin because they start from revenue. Speak the language of whoever you're pricing to.

Frequently asked questions

Is a 50% markup the same as a 50% margin?

No. A 50% markup on a $10 cost gives a $15 selling price, which is a 33.3% margin. Markup and margin are always different numbers.

How do I convert markup to margin?

Margin = Markup / (1 + Markup). A 100% markup is a 50% margin. This calculator shows both automatically.

What markup should I use?

Retail typically uses 50–100% markup, restaurants 200–300% on food cost, manufacturing 20–50%. Use the comparison table to translate to the margin your industry expects.

Related Pricing Tools

Other free tools in the pricing & profitability silo.