Markup Calculator

Calculate selling price, markup %, or profit margin.
Includes markup vs margin comparison and industry benchmarks.

Markup vs margin explained · Instant results · Industry benchmarks
Markup Calculator
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Industry Markup Benchmarks

Typical markup ranges by industry. These are gross markup percentages on cost — actual net margins after operating expenses will be lower.

Retail Clothing
50–100%
Fast fashion up to 300%
Restaurants (Food)
200–300%
On direct food cost only
Electronics
10–30%
Thin margins, high volume
Wholesale / Distribution
15–40%
Lower markup, higher volume
Jewelry
100–300%
Luxury brands higher
Construction
10–30%
On materials; labor separate
Software / SaaS
80–95%
Gross margin (not markup %)
Pharmaceuticals
50–400%
Wide range by product type
Grocery / Food Retail
10–50%
Produce lower; specialty higher
Auto Parts
25–60%
OEM vs aftermarket varies
Professional Services
50–300%
On cost of labor
Furniture
100–200%
Retail furniture especially high

Markup vs Margin — The Difference That Kills Businesses

Confusing markup and margin is one of the most common small business financial mistakes. Both measure profitability, but they use different denominators — and that single difference can completely mislead your pricing decisions.

Markup is calculated on cost

If your product costs $10 and you apply a 100% markup, you sell it for $20. Your profit is $10. Your markup is 100%. But your margin is only 50% ($10 profit ÷ $20 selling price).

Margin is calculated on selling price

That same $10 profit on a $20 sale is a 50% margin. If you tell your accountant you want a 50% margin, they're calculating on revenue. If you tell your buyer you're adding 100% markup, that's on cost. Same transaction — different numbers.

The dangerous mistake

A retailer who wants a 50% margin but applies a 50% markup is actually making only 33.3% margin. At scale, this destroys profitability. Always specify which basis you're using when discussing pricing with your team.

Related: Profit Margin Calculator · Break-Even Calculator · COGS Calculator

FAQ

Markup calculator questions

What is the difference between markup and margin?
Markup is profit ÷ cost × 100. Margin is profit ÷ selling price × 100. For the same transaction, markup % is always higher than margin %. A 50% markup = 33.3% margin. A 100% markup = 50% margin.
How do I calculate markup percentage?
Markup % = (Selling Price − Cost) ÷ Cost × 100. If cost is $40 and price is $60: ($60 − $40) ÷ $40 × 100 = 50% markup.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. Example: 50% markup → 50 ÷ 150 × 100 = 33.3% margin. Reverse: Markup = Margin ÷ (100 − Margin) × 100.
What is a good markup percentage?
It depends entirely on your industry. Restaurants mark up food 200–300%. Electronics run 10–30%. Clothing retail 50–100%. Jewelry 100–300%. A good markup covers your overhead and delivers your target net margin after all costs.