Markup Calculator
Markup % = (Selling Price − Cost) / Cost × 100. Gross Margin % = (Selling Price − Cost) / Selling Price × 100. Example: cost $50, price $75 → markup = 50%, margin = 33.3%. Markup and margin are not the same. A 50% markup gives 33.3% margin; a 50% margin requires 100% markup. Retailers typically target 50–100% markup; restaurants often use 200–400% markup on food cost.
Calculate markup percentage, gross margin, and selling price from cost. Three modes: enter cost + selling price to find markup, enter cost + markup % to find price, or enter cost + target margin % to find price. Includes markup vs margin conversion reference table and revenue multiplier.
Markup vs. Margin Reference
| Markup % | Gross Margin % | Revenue Multiplier |
|---|---|---|
| 10% | 9.1% | 1.1x |
| 20% | 16.7% | 1.2x |
| 25% | 20% | 1.25x |
| 33.3% | 25% | 1.333x |
| 50% | 33.3% | 1.5x |
| 100% | 50% | 2x |
| 200% | 66.7% | 3x |
| 300% | 75% | 4x |
Markup % = (Price − Cost) / Cost × 100. Margin % = (Price − Cost) / Price × 100. Same profit, different denominator.
How to Use
- 1
Choose calculation mode
Use "Cost + Selling Price → Markup" to find your markup % from actual numbers. Use "Cost + Markup % → Price" to set a target markup and find the selling price. Use "Cost + Margin % → Price" if you think in gross margin terms.
- 2
Enter your cost (COGS)
Type the cost of goods sold — the price you paid for the item before any profit is added. This is your break-even floor.
- 3
Enter the second value
Depending on mode: the actual selling price, your target markup %, or your target gross margin %. The calculator solves for the missing piece.
- 4
Read markup and margin
Both markup % and gross margin % are shown side by side. They measure the same profit, but with different denominators — markup uses cost, margin uses price. Markup is always a larger number.
- 5
Use the reference table
Scroll to the Markup vs. Margin reference table to quickly convert between the two. A 50% markup = 33.3% margin; a 100% markup = 50% margin.
Frequently Asked Questions
- What is markup and how is it calculated?
- Markup is the percentage added to the cost of goods to arrive at the selling price. Formula: Markup % = (Selling Price − Cost) / Cost × 100. Example: cost = $50, selling price = $75 → markup = ($75 − $50) / $50 × 100 = 50%. A 50% markup means you are charging 50% more than your cost. Markup is used by retailers, wholesalers, and manufacturers to set prices that cover costs and generate profit. It is calculated on cost, which makes it straightforward for pricing from a cost basis.
- What is the difference between markup and gross margin?
- Markup and gross margin measure the same profit dollars, but with different denominators. Markup % = Profit / Cost × 100. Gross Margin % = Profit / Selling Price × 100. Example: cost $50, price $75, profit $25 → Markup = $25/$50 = 50%. Gross Margin = $25/$75 = 33.3%. Key relationship: Margin = Markup / (1 + Markup). Markup = Margin / (1 − Margin). A 50% markup always equals 33.3% margin. Markup % is always higher than the equivalent margin % for the same transaction.
- How do I convert markup to margin and vice versa?
- To convert markup to margin: Margin % = Markup % / (100 + Markup %) × 100. Example: 50% markup → 50/150 × 100 = 33.3% margin. To convert margin to markup: Markup % = Margin % / (100 − Margin %) × 100. Example: 33.3% margin → 33.3/66.7 × 100 = 50% markup. Common conversions: 20% markup = 16.7% margin; 50% markup = 33.3% margin; 100% markup = 50% margin; 200% markup = 66.7% margin; 300% markup = 75% margin.
- What is a typical markup for retail, restaurants, and wholesale?
- Typical markups by industry: grocery retail: 12–20%; general retail (clothing, electronics): 50–100%; jewelry: 100–300%; restaurants: 200–400% on food cost (aiming for 28–35% food cost percentage); wholesale/distribution: 15–30%; software/SaaS: 1,000%+ (near-zero marginal cost); pharmaceuticals: 200–1,000%+. The appropriate markup depends on cost structure, competition, and customer price sensitivity. A low-margin product sold in high volume can be more profitable than a high-markup product with slow turnover.
- How do I calculate selling price from cost and desired markup?
- Selling Price = Cost × (1 + Markup % / 100). Example: cost $40, desired markup 50% → Selling Price = $40 × 1.5 = $60. To achieve a specific gross margin instead: Selling Price = Cost / (1 − Margin % / 100). Example: cost $40, target 40% margin → Selling Price = $40 / (1 − 0.40) = $40 / 0.60 = $66.67. Note: the margin-based formula gives a higher price than the markup-based formula for the same percentage. Use the "Cost + Markup %" or "Cost + Margin %" modes in this calculator to skip the manual computation.
- What is the revenue multiplier and why does it matter?
- The revenue multiplier is the ratio of selling price to cost: Revenue Multiplier = Selling Price / Cost. Examples: 2x multiplier (cost $50, price $100) = 100% markup; 3x multiplier = 200% markup; 4x multiplier = 300% markup. Restaurants often think in terms of a 3x–4x multiplier on food cost. The multiplier is easy to apply at scale: if your cost is $80, multiply by 2.5 to get a selling price of $200 (150% markup, 40% margin). It removes the need to re-calculate percentages for each SKU when pricing a product catalog.