Markup Calculator
Determines the percentage added to cost to arrive at a selling price and shows resulting margin
What you paid for the product or service
What you charge the customer
Percentage added to cost to arrive at selling price
Profit as a percentage of selling price
Selling price minus cost
Frequently Asked Questions
What is markup?
Markup is the percentage added to the cost of a product or service to determine its selling price. If an item costs $60 and you sell it for $100, the markup is 66.7% because the $40 profit is 66.7% of the $60 cost.
How do I calculate markup percentage?
Divide the profit (selling price minus cost) by the cost, then multiply by 100. Formula: Markup % = ((Selling Price - Cost) / Cost) x 100.
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 100% markup means you doubled the cost. That same product has a 50% margin because half the selling price is profit.
What markup should I use for my products?
Common markups vary by industry. Retail clothing often uses 100-150% (keystone markup). Restaurants typically mark up food 200-300%. Professional services may use 50-100%. The right markup depends on your overhead, competition, and target profit margin.
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