Calculate markup percentage, selling price, or cost price. Also shows gross profit, margin, and includes markup-to-margin conversion.
Selling Price: $150.00 Cost: $100.00 Markup: 50.00% Margin: 33.33% Gross Profit: $50.00
Formula: Markup = (Price − Cost) ÷ Cost × 100%. Margin = (Price − Cost) ÷ Price × 100%.
What Is Trade Markup?
Markup is the amount added to the cost price of a product to determine its selling price. It is usually expressed as a percentage of cost [citation:2]. Markup ensures that a business covers its costs and generates profit.
Markup = (Selling Price − Cost Price) ÷ Cost Price × 100%
Key concepts:
- Markup — profit as a percentage of cost. Used to set prices [citation:2].
- Margin — profit as a percentage of selling price. Used to measure profitability [citation:2].
The same profit figure always produces a larger markup percentage than margin percentage [citation:8]. For example, a $50 profit on a $100 cost is a 50% markup, but on a $150 selling price, it's a 33.3% margin.
Typical markup percentages by industry [citation:8]:
- Retail clothing & apparel: 50–150%
- Restaurants & food service: 185–260% (on food cost)
- Electronics retail: 5–30%
- Furniture & home goods: 40–75%
- Construction & contracting: 15–30%
How to Use This Calculator
- Select what to calculate: “Selling Price” (from cost + markup), “Markup %” (from cost + price), or “Cost Price” (from price + markup).
- Enter known values: Fill in the two required fields based on your selection.
- Calculate: Click “Calculate” or press Enter.
- Interpretation: Results show the computed value plus profit, margin, and all related metrics.