Universal Calculator
TAIIR

Markup Calculator

Calculate markup percentage, selling price, profit margin, and convert between markup and margin instantly.

Recent

No calculations yet

Mastering Markup and Pricing: Complete Guide

Markup is the amount added to the cost price of goods to cover overhead and profit. It is expressed as a percentage of the cost. Understanding markup is essential for retailers, wholesalers, and manufacturers to set prices that ensure profitability. This Professional Markup Calculator offers three convenient modes: calculate selling price from cost and desired markup, determine markup and margin from cost and selling price, and work backwards from a target margin to find the required cost or price.

Markup Formula

Markup % = ((Selling Price − Cost) / Cost) × 100
For example, if a product costs $50 and sells for $70, the markup is (20/50)×100 = 40%. The cost multiplier is Selling Price / Cost = 1.40.

💡 Markup vs. Margin

Markup is based on cost; margin is based on selling price. A 40% markup on $50 cost yields a $70 selling price and a 28.6% margin (20/70). Use the calculator's comparison table to see how different markups translate into margins and selling prices.

Reverse Calculation: Target Margin

If you have a target profit margin, you can determine the maximum cost you can afford for a given selling price, or the minimum selling price required to achieve that margin. The formula for selling price from cost and margin is: Selling Price = Cost / (1 − Margin). For cost from selling price: Cost = Selling Price × (1 − Margin).

Industry Benchmarks

  • Grocery: 5–25% markup (thin margins, high volume)
  • Clothing: 50–100% markup (keystone pricing common)
  • Restaurants: 200–400% markup on food cost
  • Jewelry: 50–100%+ markup
  • Electronics: 10–30% markup

Frequently Asked Questions

How do I convert margin to markup?

Markup = Margin / (1 − Margin). Example: 30% margin → 0.30 / 0.70 = 42.86% markup.

What is a good markup for retail?

Keystone markup (100%) is standard for many retailers, but actual markups vary by category. Factor in overhead, competition, and perceived value.

Can markup be negative?

Yes, a negative markup means you are selling below cost, resulting in a loss. The calculator will show negative profit and margin in that case.

How do I include overhead in markup?

Add your overhead costs to the base cost before applying markup, or increase your target markup percentage to cover both direct costs and overhead.

Related Tools

Tax Bracket CalculatorDividend CalculatorHeart Rate CalculatorDti CalculatorDepreciation CalculatorHeloc Calculator