Markup Calculator
Markup Calculator
Markup is the percentage added to cost to arrive at a selling price — a 50% markup on a 60 USD cost gives a 90 USD price. It's a common way retailers and wholesalers set prices, since it's calculated directly from what they know (the cost) rather than working backward from a target margin.
Retailers and product businesses use standard markup percentages by category (e.g., a common retail markup convention) as a starting point, then adjust for competition and perceived value.
- Formula: Selling Price = Cost × (1 + Markup% ÷ 100).
- Markup ≠ Margin: A 50% markup produces a 33.3% margin, not 50% — see our Profit Margin Calculator to convert between the two.
- Common Starting Point for Pricing: Many retail categories have conventional markup ranges; check industry norms before setting your own.
What markup should I use?
It varies by industry and category — retail apparel often uses 100%+ markup (keystone pricing), while grocery uses much thinner margins. Research your specific category's norms.
How is markup different from margin?
Markup is profit divided by cost; margin is profit divided by selling price. The same profit dollar amount always gives a higher markup percentage than margin percentage.
Markup Calculator
Markup is the percentage added to cost to arrive at a selling price — a 50% markup on a 60 USD cost gives a 90 USD price. It's a common way retailers and wholesalers set prices, since it's calculated directly from what they know (the cost) rather than working backward from a target margin.
Retailers and product businesses use standard markup percentages by category (e.g., a common retail markup convention) as a starting point, then adjust for competition and perceived value.
- Formula: Selling Price = Cost × (1 + Markup% ÷ 100).
- Markup ≠ Margin: A 50% markup produces a 33.3% margin, not 50% — see our Profit Margin Calculator to convert between the two.
- Common Starting Point for Pricing: Many retail categories have conventional markup ranges; check industry norms before setting your own.
What markup should I use?
It varies by industry and category — retail apparel often uses 100%+ markup (keystone pricing), while grocery uses much thinner margins. Research your specific category's norms.
How is markup different from margin?
Markup is profit divided by cost; margin is profit divided by selling price. The same profit dollar amount always gives a higher markup percentage than margin percentage.