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.

What does a cost plus X% markup sell for?

CostplusMarkup%markup

0Sells for 70

Cost: 50; 100% baseline
Change: +20; +40% of 50
Sells for: 70; after the increase

Cost 50 is the 100% baseline. The added segment is 20 markup, which is +40% of that baseline — the value grows.

The markup itself is 20, measured against the cost 50 — markup is a percentage of cost, never of the selling price.

Markup amount: 20
Same deal as a margin: ≈ 28.57%

Formula

Calculate the markup amount: 50 × 40% = 20

Add to the cost: 50 + 20 = 70

Verify

0.4 × 100 = 40%

Check it backwards: the profit divided by the cost returns the markup you entered.

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

01Enter the cost — Your cost or wholesale price.
02Enter the markup % — The percentage you want to add as profit.
03Get the selling price — The selling price and profit amount are shown instantly.

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