What is the difference between markup and margin?

Markup is based on cost (profit / cost). Margin is based on revenue (profit / selling price). A 50% markup equals a 33.3% margin. Always clarify which is being used.

What markup percentage should I use?

It depends on your industry. Retail typically uses 50–100%, restaurants use 200–400% on food, and software/digital products can use 1000%+. Factor in overhead, competition, and perceived value.

How do I convert markup to margin?

Margin = Markup / (1 + Markup). For a 50% markup: 0.5 / 1.5 = 33.3% margin.

Markup Calculator — Selling Price & Markup %

The Markup Calculator helps you find the right selling price for a product or service, or determine what markup percentage you're applying to your costs. Markup is calculated as the difference between selling price and cost, expressed as a percentage of cost — making it the key metric for pricing strategy and profitability.

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Cost Price ($)

Selling Price ($) — for mode 1

Markup % — for mode 2

Frequently Asked Questions

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: Markup % = (Selling Price − Cost) / Cost × 100.

Related Calculators

💰Profit Margin Calculator 💰Discount Calculator 💰Break-Even Calculator