Markup & Margin Calculator

Markup is profit as a percentage of cost: (profit / cost) x 100. Margin is profit as a percentage of revenue: (profit / selling price) x 100. Markup is always higher than margin for the same transaction. The visual comparison section shows both side by side.

Enter your cost and selling price in the first mode. The calculator subtracts cost from selling price to get profit, then divides profit by cost and multiplies by 100 to get markup percentage. Profit margin is also shown automatically.

Margin equals markup divided by (1 plus markup). Markup equals margin divided by (1 minus margin). For example, a 100% markup equals a 50% margin, and a 25% margin equals a 33.3% markup.

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Retail markups vary by industry. Clothing often uses 100-300% markup, electronics 5-20%, grocery 5-15%, and restaurants 200-400% on food items. The right markup depends on your overhead costs, competition, and target margin.