Calculate markup % and convert cost to selling price instantly. See markup and margin side by side for retail, wholesale, and distribution pricing.
Set Your Selling Price Correctly Using Markup
Markup is the most direct way to price from cost. Use this markup calculator to calculate markup percentage, convert cost to selling price, and confirm the resulting gross margin — all in one step. Built for retail, wholesale, and supplier pricing, it shows markup and margin together so you always see both sides of every pricing decision. Ideal for anyone who needs to calculate markup %, set trade prices from cost, or verify that their pricing structure achieves the margin they expect.
Confusing markup with margin is one of the most common pricing mistakes in retail — this calculator shows both so you can avoid it.
Used by retailers, wholesalers, and suppliers to price products from cost with full margin visibility. No data stored. Calculations run instantly in your browser.
Tip: Use “Selling Price from Markup” mode to find the exact price to charge given your cost and target markup %.
Markup %
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Margin %
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Profit
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Selling Price
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Profit
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Margin %
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Profit
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Markup %
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Margin %
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What Your Result Means
A 50% markup means your profit equals half of your cost — not half of your selling price.
Higher markup does not mean higher margin — always check both, this calculator shows them together.
Markup below 20–30% may not cover overhead costs in most retail and distribution businesses.
Consistent markup across your product range ensures stable, predictable pricing and margin.
Use margin to evaluate performance; use markup to set prices from cost.
This formula shows how much profit is added on top of cost.
Tip: Always check both markup and margin before setting a final price — a 50% markup produces only 33.3% margin, so the two numbers are not interchangeable in profitability reviews.
How to Use the Markup Calculator
Select the mode that matches your scenario — Markup %, Selling Price from Markup, or Profit & Margin.
Enter the required values: cost price, selling price, or target markup % depending on the selected mode.
Click Calculate to see markup %, margin %, and profit together with the exact formula used.
Use the result to set consistent selling prices, validate margins, or compare different cost and markup scenarios.
What Is Markup?
Markup is the amount added to the cost of a product to arrive at its selling price, expressed as a percentage of the cost price. It is the fundamental tool of cost-based pricing — widely used by retailers, wholesalers, manufacturers, and distributors who need to price consistently from known cost inputs.
If you buy a product for $80 and sell it for $120, your profit is $40. The markup is 40 ÷ 80 × 100 = 50%. The margin on the same transaction is 40 ÷ 120 × 100 = 33.33% — a different number measuring a different thing.
Example:
Cost: $100 | Selling Price: $150 | Profit: $50
Markup: 50 ÷ 100 × 100 = 50%
Margin: 50 ÷ 150 × 100 = 33.33%
Markup is always higher than margin when both are calculated on the same transaction with positive profit.
This calculator works alongside the Profit Margin Calculator to give a complete pricing view — markup tells you what to add on top of cost, while margin tells you how that profit compares to the final selling price.
Markup vs Margin — The Key Difference
Markup and margin are both calculated from the same transaction but measure different things. Understanding the difference prevents systematic pricing errors that quietly erode profit over time.
Metric
Based On
Formula
Example (Cost 100, Price 150)
Markup %
Cost price
(Profit ÷ Cost) × 100
50 ÷ 100 × 100 = 50%
Margin %
Selling price
(Profit ÷ Selling Price) × 100
50 ÷ 150 × 100 = 33.33%
Markup % is always higher than margin % for the same sale. A 50% markup does not produce a 50% margin — it produces 33.33%. A 100% markup produces only a 50% margin. For the full margin picture and multi-mode margin calculations, see the Profit Margin Calculator.
When to use which
Use markup when pricing from cost: suppliers, wholesale, manufacturing, stock-based retail
Use margin when reviewing financial performance: profit & loss accounts, investor reporting, financial analysis
Know both — this calculator always shows markup and margin together so you have the full picture instantly
How to Calculate Selling Price Using Markup
If you know your cost and need to set a selling price at a specific markup percentage, the formula is straightforward:
Selling Price = Cost Price × (1 + Markup % ÷ 100)
For a product costing $80 with a 60% markup target: Selling Price = 80 × 1.60 = $128. The resulting gross profit is $48, with a margin of 48 ÷ 128 = 37.5%.
Converting between markup and margin
These formulas let you move between the two measures:
Example: a 50% markup converts to a margin of 50 ÷ 150 × 100 = 33.33%. A 40% margin converts to a markup of 40 ÷ 60 × 100 = 66.67%.
For quick percentage cross-checks on any number in your pricing, the Percentage Calculator is a useful companion tool. To convert your markup target directly into a final price with margin validation, use the Selling Price Calculator — it covers margin-based, markup-based, profit-amount, and revenue-goal pricing in one tool.
When Businesses Use Markup Pricing
Markup is the default pricing method in many industries because it starts from a known, controllable number — the cost. Several sectors rely on it as the foundation of their pricing strategy:
Wholesale and distribution — wholesalers purchase in volume at cost and apply standard markup tiers (10%, 20%, 30%) depending on the product category and buyer relationship
Retail stores — brick-and-mortar retailers apply a standard keystone markup (typically 50–100%) to cover overhead, staffing, and shrinkage costs
Manufacturing — manufacturers calculate product cost (materials + labour + overhead) and apply a markup to reach the trade or retail price
Grocery and food service — food businesses price from ingredient cost using markup, then review margin to ensure profitability after waste and spoilage
Suppliers and importers — imported goods are priced from landed cost (product + freight + duty) with a markup applied before distribution
If your business operates on narrow margins or high volume, applying the correct markup consistently across all SKUs is one of the most impactful things you can do to protect profitability. Even a 2–3% improvement in markup across a product range can significantly outperform the equivalent increase in sales volume.
Common Markup Mistakes
1. Confusing markup with margin
The most common error. Applying a "50% profit target" as a 50% markup produces only 33.33% margin. If your business requires 40% gross margin, the required markup is 66.67% — not 40%.
2. Calculating markup on the selling price
Markup must be calculated on cost. If you divide profit by the selling price instead, you are calculating margin — and applying that as a markup will underprice consistently.
3. Forgetting to include all costs in the cost base
A correct cost base includes purchase price, freight, import duty, packaging, and any direct handling costs. Omitting any of these overstates markup and understates the true cost of goods.
4. Using inconsistent bases for different products
Applying markup to cost for some products and margin for others — or mixing percentage bases — makes pricing impossible to review or audit. Standardise on one method and document it.
5. Not modelling the impact of discounting
A 10% promotional discount on a product with 30% markup is a much larger erosion of profit than it appears. Use the Discount Calculator to model exactly how discounts affect your margin before applying them.
6. Ignoring GST in markup calculations
If you are GST-registered, calculate markup on the GST-exclusive (net) cost and selling price. Including GST in either figure distorts the markup percentage. Use the GST Calculator to extract the net figure before running your markup calculation.
Frequently Asked Questions
Markup is the amount added to the cost of a product, expressed as a percentage of the cost price. If a product costs $100 and you sell it for $150, the markup is $50 ÷ $100 × 100 = 50%. It is different from margin, which expresses the same profit as a percentage of the selling price ($50 ÷ $150 × 100 = 33.33%). Markup is the standard pricing method for retailers, wholesalers, and suppliers who price from known cost.
No. Markup and margin calculate the same profit but as a percentage of different figures. Markup uses cost as the denominator; margin uses selling price. For the same transaction, markup % is always higher than margin %. A 50% markup gives 33.33% margin. A 100% markup gives 50% margin. Confusing the two leads to systematic underpricing: if you need a 30% margin but apply a 30% markup, you will actually achieve only 23.08% margin.
Use the formula: Margin % = Markup % ÷ (100 + Markup %) × 100. Example: 50% markup → 50 ÷ 150 × 100 = 33.33% margin. To convert the other way: Markup % = Margin % ÷ (100 − Margin %) × 100. Example: 40% margin → 40 ÷ 60 × 100 = 66.67% markup. These conversions ensure you hit your actual profit target whether you start from cost (markup) or revenue (margin).
It depends on your industry, cost structure, and competitive position. General retail commonly uses keystone markup (100% — doubling the cost). Wholesale and distribution typically uses 10–30%. Fashion and apparel can run 100–300%. Food and grocery usually targets 30–60% to cover perishability and waste. Start with your sector benchmark, then test whether the resulting selling price is competitive in your market. Use this calculator to see the corresponding margin for any markup you consider.
Next step: Use the Selling Price Calculator to convert your markup target into an exact final price — with margin and profit validated in the same step.
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