Markup Calculator
Calculate selling prices from cost and markup percentage. Determine retail prices, wholesale markups, and understand the difference between markup and margin.
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Markup vs Margin Quick Reference
| Markup % | Margin % | $10 Cost → | $50 Cost → | $100 Cost → |
|---|---|---|---|---|
| 25% | 20.0% | $12.50 | $62.50 | $125.00 |
| 33.33% | 25.0% | $13.33 | $66.66 | $133.33 |
| 50% | 33.3% | $15.00 | $75.00 | $150.00 |
| 75% | 42.9% | $17.50 | $87.50 | $175.00 |
| 100% | 50.0% | $20.00 | $100.00 | $200.00 |
| 150% | 60.0% | $25.00 | $125.00 | $250.00 |
| 200% | 66.7% | $30.00 | $150.00 | $300.00 |
Understanding Markup vs Margin
Markup
Markup is the percentage added to the cost price to get the selling price. Formula: (Selling Price - Cost) / Cost × 100. A 100% markup means you double your cost.
Margin
Margin is the percentage of the selling price that is profit. Formula: (Selling Price - Cost) / Selling Price × 100. A 50% margin means half the selling price is profit.
Common Industry Markups
Grocery: 15-25%. Apparel: 100-300% (keystone to triple). Electronics: 30-50%. Jewelry: 100-400%. Restaurants: 300-400% on food.
Keystone Pricing
Keystone pricing is a common retail strategy where items are marked up 100% (doubled). This results in a 50% profit margin and is widely used in apparel and accessories.
Frequently Asked Questions
How do I calculate markup percentage?
Markup = ((Selling Price - Cost) / Cost) × 100. For example, if you buy for $40 and sell for $100, markup = ((100-40)/40) × 100 = 150%. This means you added 150% on top of your cost.
What is the difference between markup and margin?
Markup is based on cost; margin is based on selling price. A 100% markup equals a 50% margin. If you buy for $50 and sell for $100: markup = 100% (profit/cost), margin = 50% (profit/selling price). They measure the same profit differently.
What is a typical retail markup?
Retail markups vary by industry: clothing 100-300% (keystone to triple), jewelry 100-400%, electronics 10-30%, groceries 5-25%, furniture 200-400%. Higher markups are common for unique, luxury, or handmade items.
What is keystone pricing?
Keystone pricing is doubling the wholesale cost to set retail price - a 100% markup or 50% margin. It is a traditional retail standard but may be too low for businesses with high operating costs or too high for competitive commoditized products.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). For example, 100% markup (1.0): Margin = 1.0 / 2.0 = 0.50 = 50%. To convert margin to markup: Markup = Margin / (1 - Margin). 50% margin: Markup = 0.5 / 0.5 = 1.0 = 100%.
