Markup Calculator
Calculate selling price from cost and markup percentage, or find your markup from cost and selling price. Shows profit and margin
Selling Price
£0.00
Markup
0.00%
Profit Amount
£0.00
Profit Margin
NaN%
Breakdown
Markup is the profit on your cost price:
(£0.00 ÷ £0.00) × 100 = 0.00%
Profit Margin is the profit on your selling price:
(£0.00 ÷ £0.00) × 100 = NaN%
Markup vs Margin
Markup is the percentage added to cost to set the selling price. Margin is the profit as a percentage of selling price. Markup = (Selling Price - Cost) / Cost × 100. Margin = (Selling Price - Cost) / Selling Price × 100. So an item bought for £40 and sold for £60: markup = 50%, margin = 33.3%. Same dollars, different percentages.
Retail typically uses markup; finance and accounting use margin. A 100% markup = 50% margin (double the cost = profit equals selling price). Common retail markup ranges: groceries 20-50%, clothing 100-300%, jewellery 200-500%, restaurants 200-400% on food, software near-100% (low marginal cost). Pricing strategy depends on cost structure and market positioning.
Markup vs Margin Reference
| Markup % | Margin % | Cost £40 → Sell |
|---|---|---|
| 10% | 9.1% | £44 |
| 25% | 20% | £50 |
| 50% | 33.3% | £60 |
| 75% | 42.9% | £70 |
| 100% | 50% | £80 |
| 150% | 60% | £100 |
| 200% | 66.7% | £120 |
| 300% | 75% | £160 |
Frequently Asked Questions
Why use markup over margin?
Markup is easier for pricing decisions ('add 50% to my cost to find selling price'). Margin is easier for profitability analysis ('what's my profit on this revenue'). Both tools work; different business contexts prefer one over the other.
What's a healthy retail markup?
Depends on industry. Groceries 20-30%; clothing 100-300%; jewellery 200-500%. The 'keystone' (100% markup) is a long-standing retail rule of thumb but increasingly squeezed by online competition. Niche/specialty retail can sustain higher markups; mass-market retail compresses to lower.
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