Markup Calculator

Markup is the percentage added to the cost price to determine the selling price. It is calculated as ((Selling Price - Cost) / Cost) x 100. For example, if an item costs $50 and you sell it for $75, the markup is ((75 - 50) / 50) x 100 = 50%.

Markup is based on cost, while margin is based on selling price. A 50% markup on a $100 cost gives a $150 selling price, but the margin on that same sale is only 33.3% because profit ($50) divided by selling price ($150) equals 33.3%. Markup is always a higher percentage than margin for the same transaction.

Typical retail markups vary widely by industry. Grocery stores often use 25-50% markup, clothing retailers use 100-300% (also called keystone to triple keystone), and jewelry can be marked up 100-400%. The right markup depends on your operating costs, competition, and target profit margin.

To convert markup percentage to margin percentage, use the formula: Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) converts to 0.50 / 1.50 = 0.333, or 33.3% margin. Conversely, to convert margin to markup: Markup = Margin / (1 - Margin).