Markup & Margin Calculator

Markup is the percentage added to cost to get the selling price: (Price - Cost) / Cost x 100. Margin is the percentage of the selling price that is profit: (Price - Cost) / Price x 100. A product that costs $60 and sells for $100 has a 66.7% markup but a 40% margin. Same profit, different reference points.

Margin = Markup / (1 + Markup). For a 50% markup: 0.50 / 1.50 = 0.333 = 33.3% margin. For a 100% markup: 1.00 / 2.00 = 50% margin. The calculator handles this conversion instantly in both directions. Markup is always a higher number than margin for the same profit amount.

It varies by industry: grocery (1-3% margin), clothing (50-100% markup), restaurants (300%+ markup on beverages), electronics (5-20% margin), jewelry (50-100%+ markup). Premium brands and luxury goods have the highest markups. Understanding industry benchmarks helps set competitive and profitable prices.

Use markup when pricing from cost (adding a percentage to what you paid). Use margin when analyzing profitability from revenue (what percentage of sales is profit). Accountants and investors prefer margin. Retail buyers and pricing managers often use markup. The calculator shows both so you always have the full picture.

Selling Price = Cost / (1 - Margin). For a $60 cost at 40% margin: $60 / (1 - 0.40) = $60 / 0.60 = $100. For markup: Selling Price = Cost x (1 + Markup). The calculator lets you enter any two values (cost, price, markup, or margin) and computes the rest automatically.