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📊 Markup Calculator

Calculate selling price from cost and markup percentage, find the markup on an existing price, or reverse-calculate the cost. Instantly see the difference between markup and profit margin.

Calculation Mode

Markup vs Margin Formulas

Profit = Selling Price − Cost
Markup % = (Profit ÷ Cost) × 100
Profit Margin % = (Profit ÷ Selling Price) × 100
Selling Price = Cost × (1 + Markup ÷ 100)
Cost = Selling Price ÷ (1 + Markup ÷ 100)

Key insight: Markup uses cost as the denominator; margin uses selling price. This means markup % is always higher than the equivalent margin % — a 50% markup gives a 33.3% margin.

Example

You buy a product for $60 and apply a 40% markup.

Selling Price = $60 × 1.40 = $84.00
Profit = $84 − $60 = $24.00
Markup % = ($24 ÷ $60) × 100 = 40.00%
Margin % = ($24 ÷ $84) × 100 = 28.57%

Typical Markup by Industry

Grocery / Food Retail
Markup: 5–10% Margin: 4.8–9.1%
Apparel / Clothing
Markup: 100–300% Margin: 50–75%
Electronics
Markup: 10–30% Margin: 9.1–23%
Furniture
Markup: 200–400% Margin: 67–80%
Software / SaaS
Markup: 200–500% Margin: 67–83%
Restaurant / Food Service
Markup: 200–300% Margin: 67–75%
'Can markup percentage exceed 100%?', 'answer' => 'Yes — a 100% markup means you double the cost (cost $50, sell for $100, 50% margin). A 200% markup triples the cost. High-margin products like luxury goods, software, or jewellery routinely carry markups of 200–500%. There is no upper limit, but the market will ultimately determine what price customers will pay.'], ['question' => 'What is keystone markup?', 'answer' => 'Keystone markup is the practice of doubling the wholesale cost to set the retail price — a 100% markup resulting in a 50% margin. It is a traditional rule of thumb in retail, particularly for clothing and accessories. Modern retailers often deviate from keystone based on competition, turnover speed, and category strategy.'], ]" />

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