Markup Calculator

Markup is calculated on cost: (Selling Price − Cost) / Cost × 100. Margin is calculated on revenue: (Selling Price − Cost) / Selling Price × 100. A 40% markup results in a 28.6% margin. They measure the same profit but from different perspectives.

Margin = Markup / (1 + Markup). For a 50% markup: 0.50 / (1 + 0.50) = 0.333, or 33.3% margin. To go the other way: Markup = Margin / (1 − Margin).

It depends on your industry. Retail clothing often uses 100–150% markup. Electronics typically 10–25%. Restaurants target 300–500% on food costs. Professional services can mark up costs by 200–400%. Always check what your market will bear.