Markup Calculator
Set a selling price from your cost and markup — and see the profit and the true margin it produces.
Markup vs. margin
Markup = Profit ÷ Cost · Margin = Profit ÷ Selling price
Cost $40, markup 50%: price = 40 × 1.5 = $60, profit $20.
That same $20 profit is a 50% markup but only a 33% margin ($20 ÷ $60). Confusing the two is a classic pricing mistake.
Typical markups by industry
| Industry | Common markup |
|---|---|
| Grocery | 5%–25% |
| Restaurants (food) | 200%–300% |
| Apparel | 100%+ (keystone) |
| Jewelry | 100%–300% |
| Electronics | 5%–15% |
"Keystone" pricing simply doubles cost (100% markup = 50% margin). To price from a target margin instead of markup, use the margin calculator; to find the units you must sell to profit, the break-even calculator.
Frequently asked questions
How do I calculate markup?
Selling price = cost × (1 + markup%). $40 at 50% markup = $60 ($20 profit).
Markup vs. margin?
Markup = profit ÷ cost; margin = profit ÷ price. 50% markup = 33% margin for the same profit.
What markup should I use?
Industry-dependent: groceries low, restaurants 200%+, apparel/jewelry 100%+.
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Note: Educational tool; real pricing must cover overhead, not just unit cost. Not financial advice. Last reviewed: July 2026.