How do you calculate markup percentage?

Markup percentage is calculated by dividing the gross profit by the cost, then multiplying by 100. The formula is: Markup % = ((Selling Price – Cost) / Cost) × 100. For example, if a product costs $40 and sells for $60, the markup is ($60 – $40) / $40 × 100 = 50%.

What is the difference between markup and margin?

Markup is calculated as a percentage of the cost price, while margin (profit margin) is calculated as a percentage of the selling price. A 50% markup on a $40 item gives a $60 selling price. The profit margin on that same sale is 33.3%, not 50%. They measure the same profit but from different base values.

What markup percentage should I use for my business?

The right markup depends on your industry, competition, and cost structure. Retail products commonly use 50–100% markup (keystone pricing is exactly 100%). Food service often uses 200–300%. Services and consulting can range from 20–100% depending on overhead. Always make sure your markup covers all costs — not just product cost but also shipping, labor, and overhead.

How do I find selling price from cost and markup?

Use this formula: Selling Price = Cost × (1 + Markup% / 100). If your cost is $25 and your markup is 60%, the selling price is $25 × 1.60 = $40. Our calculator does this instantly — just enter the cost and markup percentage.

What is keystone markup?

Keystone markup is a traditional retail pricing method where the selling price is exactly double the cost — a 100% markup. This results in a 50% profit margin. For example, a product costing $20 is sold for $40. Many retailers use keystone as a starting point, then adjust up or down based on demand, competition, and the type of product.

Markup Calculator – Calculate Selling Price, Gross Profit, Profit Margin and Markup Percentage from Cost

Markup Calculator

Enter your cost and markup percentage to instantly find your selling price, gross profit, and profit margin — free online markup calculator for retail, wholesale, and service pricing.

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Margin vs. markup explained

Enter Your Details

Cost Price ($)

What you pay to buy or make the product

Markup Percentage (%)

Profit added on top of cost (not margin)

Calculate From

Pick which values you already know

Currency Symbol

Selling Price ($)

Profit Margin (%)

Margin is based on selling price (not cost)

Units Sold (optional)

See total revenue and total profit

Sales Tax / VAT Rate (%)

Added on top of selling price

Overhead / Fixed Cost ($)

Extra costs per unit (shipping, packaging, etc.)

Your Pricing Breakdown

Fill in your cost and markup on the left and click Calculate to see your full pricing breakdown.

Selling Price

$0.00

per unit

Full Breakdown

Cost Price —

Markup Percentage —

Gross Profit (per unit) —

Profit Margin —

Markup Multiplier —

Price Incl. Tax / VAT —

Total Cost (incl. overhead) —

Total Revenue (all units) —

Total Gross Profit (all units) —

Discounted Price —

vs. Competitor Price —

Markup for Target Margin —

Total Cost (incl. shipping) —

Cost vs. Profit Breakdown

Selling Price at Common Markup Rates

Markup Formula Explained

Selling Price = Cost × (1 + Markup% ÷ 100)
Gross Profit = Selling Price − Cost
Profit Margin = (Gross Profit ÷ Selling Price) × 100
Markup Multiplier = Selling Price ÷ Cost

Example: Cost = $40, Markup = 50%. Selling Price = $40 × 1.5 = $60. Gross Profit = $20. Margin = 33.3%.

Quick Reference — Common Markups

Markup %	Multiplier	Profit Margin	Selling Price on $100 Cost
10%	1.10×	9.1%	$110
25%	1.25×	20.0%	$125
33%	1.33×	24.8%	$133
50%	1.50×	33.3%	$150
100%	2.00×	50.0%	$200
150%	2.50×	60.0%	$250
200%	3.00×	66.7%	$300
300%	4.00×	75.0%	$400

Margin vs. Markup — What's the Difference?

Markup is a percentage added to the cost. A 50% markup on a $40 product gives a $60 selling price.

Margin is the profit as a percentage of the selling price. On that same sale, the margin is 33.3%, not 50%.

Using the wrong one leads to underpricing. Many businesses quote margins when they mean markup — always confirm which base is being used.

To convert markup to margin: Margin = Markup ÷ (1 + Markup)
To convert margin to markup: Markup = Margin ÷ (1 − Margin)

Typical Markup by Industry

Industry	Typical Markup	Approx. Margin
Grocery / Food Retail	5–15%	5–13%
Electronics	10–30%	9–23%
Clothing / Apparel	50–100%	33–50%
Furniture	100–200%	50–67%
Jewelry	50–300%	33–75%
Restaurant / Food Service	100–400%	50–80%
Software / SaaS	200–500%	67–83%
Consulting / Services	50–150%	33–60%

These are general ranges. Your actual markup will depend on local competition, overheads, brand positioning, and what the market will bear.

Frequently Asked Questions

Subtract the cost from the selling price to get gross profit, then divide by the cost and multiply by 100. Formula: Markup % = ((Selling Price − Cost) ÷ Cost) × 100. For example, if a product costs $25 and sells for $40, the markup is (40 − 25) ÷ 25 × 100 = 60%. Our calculator does this in the "Cost + Selling Price" mode automatically.

No. They measure the same profit but from different bases. Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 50% markup equals a 33.3% margin. A 50% margin equals a 100% markup. Confusing these two is one of the most common pricing mistakes in business.

It depends heavily on your industry and cost structure. A common starting point for product-based businesses is 50% (keystone is 100%). Service businesses often use 50–150%. The most important thing is that your markup covers all costs — not just product cost but also labor, shipping, storage, and overhead — and still leaves you with a profit. Run your numbers with realistic total costs before setting a price.

Keystone pricing means marking up a product by exactly 100% — doubling the cost to get the selling price. A product costing $20 would sell for $40. It results in a 50% profit margin. It's a simple rule of thumb used widely in traditional retail. Many modern businesses use a different percentage based on their specific costs and competition.

Use this formula: Selling Price = Cost ÷ (1 − Margin%). If your cost is $30 and you want a 40% margin, the selling price = $30 ÷ (1 − 0.40) = $30 ÷ 0.60 = $50. Select "Selling Price + Margin %" mode in the calculator above to do this calculation quickly.

Yes — for an accurate picture. The basic cost is what you pay to purchase or produce one unit. But real profitability also depends on overheads like rent, labor, packaging, and shipping. If you only markup the raw cost, you may appear profitable but actually lose money once overhead is factored in. Use the Advanced Options in our calculator to add a per-unit overhead amount before calculating your markup.

Selling Price at Various Costs and Markup Rates

Use this table to quickly find your selling price by matching your cost row with the right markup column.

Cost	10% Markup	25% Markup	50% Markup	75% Markup	100% Markup	150% Markup

Formula: Selling Price = Cost × (1 + Markup% ÷ 100). Currency shown as $.

Markup to Profit Margin Conversion Table

See the profit margin that corresponds to each markup percentage. These are not the same number.

Markup %	Multiplier	Profit Margin %	Profit on $50 cost	Profit on $100 cost	Profit on $200 cost

Margin = Markup ÷ (1 + Markup). A 100% markup = 50% margin. A 50% markup = 33.3% margin.

Total Gross Profit by Units Sold

How much total profit you earn at different volumes for a $50 cost with 50% markup.

Units Sold	Revenue	Total Cost	Gross Profit	Margin

Based on cost of $50 per unit, selling price of $75 (50% markup). Gross profit per unit = $25.

Markup Benchmarks by Industry

General reference for typical markup ranges across common business types. Actual figures vary widely by location and business model.

Industry	Low Markup	High Markup	Typical Margin	Notes
Grocery / Supermarket	5%	15%	5–13%	High volume, thin margins
Consumer Electronics	10%	30%	9–23%	Competitive pricing pressure
Books & Stationery	30%	60%	23–38%	Varies by channel
Clothing & Footwear	50%	150%	33–60%	Season and brand-dependent
Furniture & Home	80%	200%	44–67%	High storage and showroom costs
Jewelry & Accessories	50%	400%	33–80%	Wide range based on brand
Restaurant / Café	100%	500%	50–83%	Must cover labor and waste
Health & Beauty	50%	200%	33–67%	Strong brand premiums
Software / Digital	200%	1000%+	67–91%	Near-zero marginal cost
Professional Services	50%	200%	33–67%	Based on hourly or project rates
Auto Parts	25%	100%	20–50%	OEM vs. aftermarket
Construction Materials	15%	50%	13–33%	Contractor vs. retail pricing

These are general estimates for reference. Always research your specific market and total cost structure before setting prices.

Break-Even Units at Different Fixed Costs

How many units you need to sell to cover fixed costs at a $25 gross profit per unit.

Fixed Monthly Cost	Break-Even Units	Break-Even Revenue	Units for $500 Profit	Units for $1K Profit	Units for $5K Profit

Assumes gross profit of $25 per unit (e.g. cost of $50, selling price of $75 at 50% markup). Break-even = Fixed Cost ÷ Gross Profit per Unit.

Selling Price After Adding Sales Tax or VAT

Final customer-facing price once tax is added on top of the selling price (50% markup on shown cost).

Cost	Selling Price Before Tax	+5% Tax	+10% Tax	+15% Tax	+20% Tax	+25% Tax

Assumes 50% markup. Tax is added on top of the selling price, not the cost. Prices shown in $.