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Markup Calculator
Calculate markup percentage from cost and selling price. Or enter your cost and target markup to find the right selling price. See the margin equivalent instantly.
How to Use This Calculator
Mode 1: Find Markup
Enter your cost price and selling price. The calculator shows your markup percentage and the equivalent profit margin.
Mode 2: Find Price
Enter your cost price and target markup percentage. The calculator shows what selling price you need and the resulting margin.
Colour Codes
Green = 100%+ markup (healthy). Amber = 50-99% (moderate). Red = under 50% (thin margins likely after channel fees).
What is Markup?
Markup is the percentage you add to your cost price to arrive at your selling price. It answers the question: “How much did I add on top of what I paid?”
The formula: Markup % = ((Selling Price – Cost) / Cost) x 100
Example: If your product costs $10 and you sell it for $25:
- Markup = ($25 – $10) / $10 x 100 = 150%
- You added 150% on top of your cost
- The equivalent margin is 60% (profit as % of selling price)
Markup vs Margin: The Conversion Table
These are the same profit expressed two different ways. Markup is always the larger number because it uses cost (smaller) as the denominator. This is why a “50% markup” sounds better than the “33% margin” it actually produces.
| Markup % | Margin % | Multiplier |
|---|---|---|
| 25% | 20% | 1.25x cost |
| 50% | 33.3% | 1.50x cost |
| 75% | 42.9% | 1.75x cost |
| 100% | 50.0% | 2.00x cost |
| 150% | 60.0% | 2.50x cost |
| 200% | 66.7% | 3.00x cost |
| 300% | 75.0% | 4.00x cost |
| 400% | 80.0% | 5.00x cost |
When to Use Markup vs Margin
Use markup when: setting prices from cost (cost-plus pricing), communicating with suppliers, calculating wholesale prices, comparing production costs across products.
Use margin when: analysing profitability, comparing across channels, reporting to investors, calculating break-even, understanding how much revenue you keep.
The most common mistake in product pricing is using these interchangeably. If your buyer asks for “50% margin” and you give them a “50% markup,” you just underpriced by 17 percentage points.
Typical Markups by Industry
| Industry | Typical Markup | Equivalent Margin |
|---|---|---|
| Grocery / FMCG | 25-50% | 20-33% |
| Clothing / Apparel | 100-300% | 50-75% |
| Electronics | 30-50% | 23-33% |
| Cosmetics / Beauty | 200-500% | 67-83% |
| Furniture | 200-400% | 67-80% |
| Jewellery | 100-300% | 50-75% |
| Food & Beverage (DTC) | 150-300% | 60-75% |
| Supplements / Wellness | 300-500% | 75-83% |
Know your markup. Now test your price.
Markup tells you what to charge. Our Market Research Agent tells you what customers will actually pay. Test price points against 250+ modelled shoppers.
Frequently Asked Questions
Markup is profit as a percentage of cost (what you paid). Margin is profit as a percentage of selling price (what the customer pays). A 100% markup doubles your cost and gives you a 50% margin. They describe the same profit differently.
Margin = Markup / (1 + Markup). For example, a 50% markup: 0.50 / 1.50 = 0.333 = 33.3% margin. Or use this calculator which shows both automatically.
You need a 100% markup to achieve a 50% margin. This means doubling your cost price. Use Mode 2 of this calculator to experiment with different markup targets and see the resulting margin.
Because markup uses cost as the denominator (smaller number) while margin uses selling price (larger number). The same $15 profit on a $10 cost is a 150% markup but only a 60% margin on the $25 selling price.
It varies by category. Grocery is typically 25-50%. Apparel and accessories are 100-300%. Beauty and cosmetics can be 200-500%. The key is that your markup must cover all costs beyond COGS: marketing, platform fees, returns, shipping, and overhead.
Use markup to calculate your minimum viable price (cost-plus). Then validate with margin to ensure profitability after all channel costs. Ideally, also test with customers to find the price that maximises revenue, not just the price that covers costs.
Wholesale buyers typically expect to buy at 50% off retail (a keystone markup). So if your retail price is $40, wholesale is $20, and your cost needs to be low enough that $20 still gives you a healthy margin. Many brands need costs under $8-10 to make wholesale work.
More Calculators
Calculate margin from cost and price
Break-Even Calculator
Coming soon
Wholesale Price Calculator
Coming soon