Markup Calculator

Markup is the amount added to the cost of a product to determine its selling price, expressed as a percentage of the cost. For example, if a product costs $100 and you apply a 50% markup, the selling price is $150. Markup is always calculated relative to the cost price — making it different from margin, which is calculated relative to the selling price.

Markup is calculated as (Selling Price − Cost) / Cost × 100, using cost as the base. Margin is calculated as (Selling Price − Cost) / Selling Price × 100, using the selling price as the base. Because the denominators differ, the same profit produces different percentages. A 50% markup on a $100 item gives a selling price of $150 and a 33.33% margin — not 50%. Always specify which metric you're using to avoid confusion.

Retail markups vary widely by industry. Grocery stores typically apply 10–35% markups. Apparel and fashion retailers commonly use 100–300% (keystone pricing of 2× cost is standard). Electronics often fall in the 15–30% range due to thin margins. Jewelry can exceed 300%. The appropriate markup depends on your industry's cost structure, competition, and the perceived value of your product.

Use the formula: Selling Price = Cost × (1 + Markup% / 100). For example, if your cost is $80 and you want a 25% markup: Selling Price = $80 × 1.25 = $100. The profit amount is $100 − $80 = $20. You can use the calculator above in Mode A (Calculate Selling Price) to do this instantly.

Because they use different bases. A 50% markup means you add 50% of the cost to the cost: $100 cost + $50 = $150 selling price. The margin on that sale is $50 / $150 ≈ 33.33% — not 50%. To achieve a 50% margin, you would need a 100% markup (double the cost). Always be clear about whether a percentage is markup (cost-based) or margin (revenue-based).