Markup Calculator
Calculate product pricing, markup percentage, profit margin, and selling price. Essential for e-commerce and retail pricing.
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Markup vs Margin Explained
Markup
The percentage added to the cost price to determine the selling price.
Profit Margin
The percentage of the selling price that is profit.
Quick Conversion Reference
| Markup | Margin | Multiplier |
|---|---|---|
| 25% | 20% | 1.25x |
| 50% | 33.3% | 1.50x |
| 100% | 50% | 2.00x |
| 200% | 66.7% | 3.00x |
| 300% | 75% | 4.00x |
Industry Markup Benchmarks
| Industry | Typical Markup | Equivalent Margin |
|---|---|---|
| Grocery | 5-25% | 5-20% |
| Clothing & Apparel | 50-100% | 33-50% |
| Electronics | 15-35% | 13-26% |
| Jewelry | 100-300% | 50-75% |
| Furniture | 40-80% | 29-44% |
| Restaurants | 200-400% | 67-80% |
| Cosmetics | 100-500% | 50-83% |
| Software/SaaS | 400-1000%+ | 80-90%+ |
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to cost to get the selling price, calculated as (Profit/Cost) × 100. Margin is the percentage of selling price that is profit, calculated as (Profit/Selling Price) × 100. A 100% markup equals a 50% margin.
How do I calculate markup percentage?
Markup % = ((Selling Price - Cost) / Cost) × 100. For example, if you buy a product for $50 and sell it for $75, your markup is (($75-$50)/$50) × 100 = 50%.
What is a good markup percentage?
It varies by industry. Grocery typically uses 5-25%, clothing uses 50-100%, jewelry uses 100-300%, and software/SaaS can be 400% or more. Your markup should cover all costs and provide reasonable profit.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) converts to: 0.50 / 1.50 = 0.333 or 33.3% margin.
How do I convert margin to markup?
Markup = Margin / (1 - Margin). For example, a 33.3% margin (0.333) converts to: 0.333 / 0.667 = 0.50 or 50% markup.
Should I use markup or margin for pricing?
Both are valid approaches. Markup is easier for calculating selling prices from cost. Margin is better for financial analysis and comparing profitability across products. Many retailers use markup for pricing and margin for reporting.
How do I price products for profit?
Start with your total cost (product cost + shipping + handling). Add your desired profit, accounting for operating expenses, overhead, and desired net profit. Consider competitor pricing and perceived value. Test and adjust based on sales data.
What costs should I include before calculating markup?
Include the product cost, shipping/freight, handling and packaging, import duties (if applicable), and any direct costs. For accurate profitability, also consider storage, marketing allocation, and payment processing fees when setting prices.
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