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.

Instant Answer

What price is a $40 cost with 50% markup?

A cost of 40 with 50% markup sells for 60.

A cost of 40 with 50% markup sells for 60, a profit of 20. Markup is a percentage of cost, not of the selling price.

Formula: Price = Cost × (1 + (Markup% ÷ 100)) · Margin% = (Profit ÷ Price) × 100
Definition: Markup is the amount added to cost, expressed as a percentage of that cost. Margin, by contrast, is profit as a percentage of the selling price.

Convert to decimal:50% = 50 ÷ 100 = 0.5
Multiply:0.5 × 40 = 20
Add to cost:40 + 20 = 60

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.

Markup — worked examples

Markup — worked examples
Question	Calculation	Answer	Open
100 cost + 10% markup	100 × (1 + 10 ÷ 100)	110	Prefilled
50 cost + 20% markup	50 × (1 + 20 ÷ 100)	60	Prefilled
80 cost + 25% markup	80 × (1 + 25 ÷ 100)	100	Prefilled
40 cost + 50% markup	40 × (1 + 50 ÷ 100)	60	Prefilled
25 cost + 60% markup	25 × (1 + 60 ÷ 100)	40	Prefilled
30 cost + 100% markup	30 × (1 + 100 ÷ 100)	60	Prefilled
20 cost + 150% markup	20 × (1 + 150 ÷ 100)	50	Prefilled

Every figure above is produced by the same calculation engine that powers the calculator on this page.

Calculation method and limitations

Method: The markup percentage is applied to the cost to get the profit, which is added to the cost to get the selling price.

Limitations

Markup and margin are different measures — a 50% markup is a 33.33% margin.
Cost here means unit cost; overheads and fees are not included.
Sales tax or VAT is applied after the selling price, not inside it.

Method and examples last reviewed August 6, 2026 by the Snap Percent Calc editorial team. All calculations run locally in your browser.

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