Markup Calculator (cost to sell price + margin)
Enter cost and markup percentage to get sell price, profit per unit, and gross margin. Useful for retail, e-commerce, and wholesale pricing decisions.
How it works
Markup vs margin โ they're different
Markup is the increase from cost to sell price, expressed as a percent of cost. Sell price = cost ร (1 + markup/100). A 50% markup on a $10 cost gives $15 sell price.
Margin is the profit as a percent of sell price. Margin = profit / sell price ร 100. The same $10 cost / $15 sell price has a 33.3% margin (5/15), not 50%. Confusing the two is the most common pricing mistake โ usually in the direction of underpricing.
Industry markup norms
Restaurants: food cost markup of 200-300% (3-4ร cost) is standard. The high markup covers labor, rent, and waste, not pure profit.
Retail apparel: 100-150% markup (2-2.5ร cost) at full price; sales slash margins.
Grocery: 5-25% markup is typical, much thinner than other retail. Volume makes it work.
Software / digital goods: highly variable โ markup can be infinite when cost-to-deliver is near zero. Pricing is set by perceived value, not cost-plus.
When to think margin, when markup
Use markup when setting a price from cost: 'I bought it for $X, charging $Y'. Easy to compute, easy to apply across SKUs.
Use margin when reporting profitability: 'we earn $X per $100 of revenue'. Margin is what shareholders, accountants, and analysts focus on.
Same number, two views. If you only remember one rule: a 50% markup โ 50% margin. The calculator shows both so you can switch perspective without re-doing the math.
Frequently asked questions
โบWhat's the formula?
Sell price = cost ร (1 + markup/100). Profit = sell price โ cost. Margin = profit / sell price ร 100.
โบIs markup or margin more useful?
Both. Use markup to set prices, margin to track profitability.
โบWhat's a healthy markup?
Depends on industry โ see common ranges in the article. Within an industry, look at competitors.
โบHow do I work backward from margin to markup?
Markup = margin / (1 โ margin/100). 30% margin = 42.86% markup.
โบDoes this include taxes or shipping?
No. The cost you enter should be your fully-loaded landed cost. Add shipping and import duties to the cost figure if relevant.
โบWhat if my cost varies by quantity?
Calculate at the average cost, or run multiple scenarios. For volume-discount sourcing, use the cost tier you actually pay at the planned volume.
โบHow is markup affected by sales/discounts?
Discounts reduce margin. A 20% discount off a 50% markup: sell drops from 1.5รcost to 1.2รcost, margin drops from 33% to 17%.
โบDoes the data leave my browser?
No. Calculation runs locally.
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