Calculate the selling price from cost and desired markup percentage, or find the markup percentage from cost and selling price. See both markup and margin side by side.
Your cost per unit
Percentage above cost
Selling Price
$70.00
Profit per Unit
$20.00
Markup
40.0%
Margin
28.6%
Markup is based on cost (40.0% of $50.00), while margin is based on selling price (28.6% of $70.00).
Markup
40.0%
% of cost
Margin
28.6%
% of selling price
Markup is based on cost; margin is based on selling price. They are never the same unless zero.
25% Markup
margin
50% Markup
margin
100% Markup
margin
200% Markup
margin
Economy
High volume, low margin
$57.50
15% markup | $7.50 profit
Competitive
Market-rate pricing
$65.00
30% markup | $15.00 profit
Standard
Balanced profit & volume
$75.00
50% markup | $25.00 profit
Premium
Brand value pricing
$100.00
100% markup | $50.00 profit
Luxury
Exclusivity positioning
$150.00
200% markup | $100.00 profit
Based on your cost of $50.00. Your current markup: 40.0%
Understanding the difference between markup and margin is critical for pricing strategy. Markup is calculated as a percentage of your cost, making it intuitive when setting prices. Margin is calculated as a percentage of the selling price, making it useful for analyzing profitability from revenue statements. Both represent the same profit amount — they just use different denominators. This calculator shows you both values simultaneously so you can price products confidently and communicate effectively with your accounting and sales teams.
Markup is the percentage added to the cost to get the selling price (based on cost), while margin is the percentage of the selling price that is profit (based on price). A 50% markup results in a 33.3% margin. They measure the same profit differently.
Markup percentage = ((Selling Price - Cost) / Cost) × 100. For example, if an item costs $50 and you sell it for $75, the markup is (($75 - $50) / $50) × 100 = 50%.
To convert markup to margin: Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) gives a margin of 0.50 / 1.50 = 33.3%. To convert margin to markup: Markup = Margin / (1 - Margin).
Retail markups vary widely by industry. Grocery stores typically use 25-50% markup, clothing retailers 100-300%, and restaurants 200-400% on food items. The right markup depends on your operating costs and competitive landscape.
Profit Margin Calculator
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Calculate how many units you need to sell to cover your costs. Enter your fixed costs, price per unit, and variable cost per unit to find your break-even point.