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Calculate markup, selling price, and profit margin. Understand the difference between markup and margin.
Enter cost and markup to calculate
Example: $50 cost with 60% markup = $50 × 0.60 = $30 markup → Selling price = $80
Same profit dollar amount, but different percentages because of different base values!
Example: Cost $50, Sell for $80
• Markup = ($80 - $50) / $50 = 60%
• Margin = ($80 - $50) / $80 = 37.5%
Example: 50% markup → 50 / 150 × 100 = 33.33% margin
Example: 40% margin → 40 / 60 × 100 = 66.67% markup
| Cost | Markup % | Selling Price | Margin % |
|---|---|---|---|
| $100 | 10% | $110 | 9.09% |
| $100 | 25% | $125 | 20.00% |
| $100 | 50% | $150 | 33.33% |
| $100 | 75% | $175 | 42.86% |
| $100 | 100% | $200 | 50.00% |
| $100 | 150% | $250 | 60.00% |
| $100 | 200% | $300 | 66.67% |
| $100 | 300% | $400 | 75.00% |
Markup percentage is the percentage added to the cost price to determine the selling price. It represents how much profit you make relative to what you paid. Formula: Markup% = (Selling Price - Cost) / Cost × 100.
Markup is calculated based on cost, while margin is based on selling price. For example, if you buy for $60 and sell for $100: Markup = $40/$60 = 66.67%, but Margin = $40/$100 = 40%. They represent the same profit but as different percentages.
Multiply your cost by (1 + markup%). For example, with $50 cost and 40% markup: $50 × 1.40 = $70 selling price. Or calculate markup amount first: $50 × 0.40 = $20, then add to cost: $50 + $20 = $70.
Yes! A 100% markup means you're selling for double the cost. A 200% markup means triple the cost. There's no limit to markup percentage - it depends on your business model and market conditions.
Cost = Selling Price / (1 + Markup% / 100). For example, if selling price is $150 with 50% markup: $150 / 1.50 = $100 cost.
This varies by industry. Retail typically uses 50-100% markup, restaurants often use 300% on food, while grocery stores might use only 15-20%. Consider your costs, competition, and market positioning.
Use the formula: Margin% = Markup% / (100 + Markup%) × 100. For example, 75% markup converts to: 75 / 175 × 100 = 42.86% margin.
Markup is easier for pricing (just add percentage to cost). Margin is better for financial analysis (shows profit relative to revenue). Many businesses track both - use markup for pricing, margin for profitability analysis.