Selling Price = Cost × (1 + markup/100); Margin = Profit / Selling Price × 100Markup is the percentage added to cost. A 50% markup on a $50 item adds $25, giving a $75 selling price. Profit margin is the same profit expressed as a percentage of the selling price, which is always lower than the markup percentage for the same profit. The two are commonly confused.
Enter cost and markup percentage. Get selling price, profit per unit, and profit margin.
Enter your cost per unit and the markup percentage you want to apply to get the selling price, profit per unit, and the equivalent profit margin. Useful for retail pricing, freelance project bids, and translating between supplier wholesale prices and customer-facing retail figures.
Markup is the gap between cost and selling price, expressed as a percentage of cost. A 50% markup on a $50 item gives a $75 selling price and $25 profit. Markup is not the same as margin: the same $25 profit on a $75 sale is a 33% margin. This calculator shows both numbers from the same inputs so you stop confusing them.
You came here because
Common situations
- Retail pricing: Set selling prices from supplier costs and target margins.
- Freelance project pricing: Add a markup to direct project costs (subcontractors, materials, software) to cover overhead and profit.
- Wholesale to retail conversion: Calculate retail pricing when you know wholesale cost.
- Quoting and bidding: Build cost-plus quotes with explicit markup that customers can validate.
Under the hood
How the calculation works
- 1Enter the cost of the item or service per unit.
- 2Enter the markup percentage you want to apply.
- 3The calculator multiplies cost by (1 + markup / 100) for selling price.
- 4Profit is selling price minus cost.
- 5Profit margin is the same profit as a percentage of the selling price.
Show me
A real example
Example: $50 item with 50% markup
- 1Selling price = 50 × (1 + 0.50) = $75
- 2Profit = 75 - 50 = $25
- 3Profit margin = 25 / 75 = 33.3%
Watch out for
What can go wrong
- Confusing markup with margin: A 50% markup is a 33% margin. If you set prices using "50% margin" math when you meant markup, you under-charge by a third. Always confirm which one the formula uses.
- Markup based on selling price: Markup is always calculated on cost, not selling price. Calculating it on selling price gives a margin figure with a misleading label.
- Forgetting overhead: A 30% markup may sound like 30% profit but it must also cover rent, utilities, marketing, and other overhead. Net profit is usually much smaller than markup.
- Pricing every item at the same markup: Different products bear different markups. Bestsellers and basics often have lower markups; specialty or low-volume products carry higher ones.
Glossary
Related concepts
| Term | Definition |
|---|---|
| Markup | The percentage added to cost to determine selling price. Markup = (price - cost) / cost × 100. |
| Profit margin | Profit as a percentage of selling price. Margin = (price - cost) / price × 100. Always lower than markup for the same profit. |
| Cost-plus pricing | Pricing strategy that adds a fixed markup to cost. Simple to apply but ignores customer willingness to pay. |
| Keystone markup | A traditional 100% markup (double the cost), common in retail apparel. |
Make it better
Pro tips
- Quote markup, track margin: When quoting customers, "50% markup" sounds more reasonable than "33% margin" even though they mean the same thing. Track margin internally for profitability.
- Use industry benchmarks: Apparel: 100-200% markup. Restaurants: 200-300% on food. Electronics: 20-50%. Books: 40%. Knowing your industry norm helps you set defensible prices.
- Account for shrinkage in retail: Inventory loss (theft, damage, expiration) reduces real margin by 1-3% in most retail. Add that to your markup target.
- Test before standardizing: Run A/B tests at different markup levels for similar products to find the sweet spot where revenue is maximized.
Common questions
Frequently asked questions
Quick reference
Markup to Margin Conversion
Same profit, two different percentages
| Markup % | Margin % | Example ($100 cost) |
|---|---|---|
| 25% | 20% | $100 → $125 |
| 50%typical | 33% | $100 → $150 |
| 75% | 43% | $100 → $175 |
| 100% | 50% | $100 → $200 |
| 150% | 60% | $100 → $250 |
| 200% | 67% | $100 → $300 |
For related calculations, try the Profit Margin, Discount Calculator, or Break-Even Calculator. Browse all Calculator Online calculators for the full catalog.
Methodology
This calculator uses the standard markup calculator formula. Results match those from established financial, scientific, and health references.
Reviewed by
Calculator Online Editorial Team. All formulas verified against authoritative sources before publication.
Last updated
2026-05-24