BCBetter Calculators

Markup Calculator

Calculate markup percentage based on cost and selling price.

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Enter your values and click Calculate

How It Works

Markup percentage expresses how much you have added above your cost, measured as a fraction of that cost. The formula is: Markup (%) = (Selling Price − Cost) ÷ Cost × 100. First, profit is determined by subtracting cost from selling price. That profit is then divided by cost — not by selling price — and multiplied by 100. Because the denominator (cost) is smaller than the denominator used for margin (selling price), markup percentages are always higher than margin percentages for the same transaction. The calculator also displays the equivalent profit margin so you can see both perspectives at once. To find a selling price from a target markup, multiply cost by (1 + markup as a decimal): for a 50% markup on $60, the price would be $60 × 1.50 = $90.

Examples

Buy for $60, sell for $100
A standard retail pricing scenario.
Result: 66.67% markup, $40 profit, 40% margin.
Contractor cost $200, invoice $350
A service job quoted above cost of labor and materials.
Result: 75% markup, $150 profit, 42.86% margin.
Wholesale item: $12 cost, $30 retail price
A common consumer goods markup from wholesale to retail.
Result: 150% markup, $18 profit, 60% margin.

Frequently Asked Questions

What is the difference between markup and margin?
Markup is profit as a percentage of cost, while margin is profit as a percentage of selling price. For the same numbers, markup will always be higher. A product bought for $60 and sold for $100 has a 66.7% markup but only a 40% margin — confusing the two is a common and costly pricing mistake.
How do I find the selling price from a desired markup?
Multiply your cost by (1 + markup as a decimal). For a 50% markup on a $60 cost: $60 × 1.50 = $90 selling price. This differs from working backward from a desired margin, which requires dividing cost by (1 − margin).
What markup percentage is typical?
Markup varies widely by industry — grocery retail often uses 10–25%, clothing retail can reach 100–300%, and restaurants typically mark up food costs by 300% or more. The right markup depends on your overhead, competition, and the profit margin you need to cover all operating costs.

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