What is the difference between markup and margin?

Markup is based on cost (Selling Price = Cost × (1 + Markup%)). Margin is based on selling price (Profit ÷ Selling Price × 100). A 100% markup equals a 50% margin.

How do I calculate markup percentage?

Markup% = ((Selling Price − Cost) ÷ Cost) × 100. If cost is $50 and selling price is $70: (($70 − $50) ÷ $50) × 100 = 40% markup.

What markup should I use?

It depends on your industry. Retail typically uses 50-100% markup, restaurants 200-300%, and software can be much higher. Research your industry standards.

Markup Calculator

Calculate selling price based on cost and markup percentage.

How to use

1Enter the cost — Your cost or wholesale price.

2Enter the markup % — The percentage you want to add as profit.

3Get the selling price — The selling price and profit amount are shown instantly.

Cost

Markup (%)

Result

$70.00

Cost $50.00 + 40% markup = $70.00

0%100%

Step-by-step

1Calculate markup amount:$50.00 × 40% = $20.00

2Add to cost:$50.00 + $20.00 = $70.00

Tab to move between fields · Results update instantly as you typeResults update instantly as you type

Understanding Markup Percentage

Markup is the amount added to the cost of a product to determine its selling price. It's expressed as a percentage of the cost — not the selling price. This distinction matters: a 50% markup on a $100 item gives a $150 price, but the profit ($50) is only 33.3% of the selling price (that's the margin).

The Formula: Selling Price = Cost × (1 + Markup% ÷ 100)

Business Applications

Retail pricing: A clothing store buys shirts at $22 each and applies a 120% markup. Selling price: $22 × 2.20 = $48.40, yielding $26.40 profit per shirt.
Food service: A restaurant's food cost for a dish is $6.50 with a standard 300% markup. Menu price: $6.50 × 4 = $26.00.
Freelance work: Your project costs (tools, time, overhead) total $800. A 75% markup means billing $1,400 — covering costs plus a $600 profit.
E-commerce: Wholesale cost is $35 per unit, shipping adds $5. With a 60% markup on the $40 total cost, list at $64.

Markup vs. Margin vs. Discount

Markup and margin are often confused. Markup is based on cost; margin is based on selling price. A 100% markup equals a 50% margin. When you're on the buyer's side calculating savings, our Discount Calculator is more appropriate. To reverse-engineer a price back to its pre-markup cost, the Reverse Percentage Calculator does exactly that.

For broader financial planning, explore how consistent profits can grow through compound interest when reinvested wisely.