Published 2025-10-06 · Last updated 2025-12-02 · Reviewed by Valzura Editorial Team
Markup Calculator
Set prices with confidence and see the margin your markup really produces.
Markup is the amount added to a product's cost to set its selling price, expressed as a percentage of cost. If an item costs 100 dollars and you apply a 50 percent markup, the selling price is 150 dollars. Markup is calculated on cost, while margin is calculated on selling price, so the two percentages are never equal. A 50 percent markup, for instance, equals a 33.3 percent gross margin.
What the item costs you to make or buy.
Percentage added on top of cost.
Enter a unit cost to calculate your selling price.
Markup and margin are not the same number
Margin% = Markup% / (1 + Markup%)
Markup is measured against cost; margin is measured against the selling price. That single difference in denominator is why a 50 percent markup is only a 33.3 percent gross margin. Owners who set prices using a target margin but calculate it as a markup consistently underprice and quietly erode profit.
A quick conversion table
25 percent markup equals a 20 percent margin.
50 percent markup equals a 33.3 percent margin.
100 percent markup equals a 50 percent margin.
150 percent markup equals a 60 percent margin.
To convert any markup to its margin, divide the markup by one plus the markup. To go the other way, divide the margin by one minus the margin. The calculator above shows both figures at once so you never confuse them.
Setting a markup that actually works
A durable markup covers your direct costs, contributes to overhead, and leaves a target profit, all while staying competitive. Once your pricing is set, see how the resulting margins roll up across your whole business with the profit margin calculator, then find out what those profits make your company worth using the free valuation calculator.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. Because the denominators differ, the numbers diverge: a 50 percent markup is a 33.3 percent margin, and a 100 percent markup is a 50 percent margin. Confusing the two is a common cause of underpricing.
How do you convert markup to margin?
Divide the markup percentage by (100 plus the markup percentage), then multiply by 100. A 25 percent markup becomes 25 divided by 125, which is 20 percent margin. To go the other way, divide margin by (100 minus margin).
What is a good markup percentage?
Retail markups commonly range from 50 to 100 percent, while grocery and high-volume goods use much thinner markups and specialty or luxury items use far higher ones. The right markup covers your overhead and target profit while staying competitive in your market.
How do you calculate selling price from cost and markup?
Multiply the cost by one plus the markup percentage expressed as a decimal. A 40 dollar cost with a 60 percent markup sells for 40 times 1.6, which is 64 dollars, producing 24 dollars of gross profit.
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