Markup Calculator
Enter your product cost and desired markup percentage, and this calculator shows the selling price, profit per unit, and gross margin percentage. Markup and margin are related but different — markup is the percentage added on top of cost, while margin is profit as a percentage of selling price.
Selling Price is calculated as Cost x (1 + Markup% / 100). Profit is Selling Price minus Cost. Margin is (Profit / Selling Price) x 100. Understanding the relationship between these three numbers is essential for pricing — a 50% markup produces a 33.3% margin, not a 50% margin, which is one of the most common pricing mistakes in retail and e-commerce.
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By The Paper Room Editorial Team — Calculators
Frequently asked questions
What's the difference between markup and margin?▼
Markup is profit as a percentage of cost: (Selling Price - Cost) / Cost x 100. Margin is profit as a percentage of selling price: (Selling Price - Cost) / Selling Price x 100. A 100% markup (doubling the cost) gives a 50% margin. They answer different questions: markup tells you how much you added to cost; margin tells you what fraction of revenue is profit.
How do I convert between markup and margin?▼
Margin = Markup / (1 + Markup). For example, a 50% markup = 0.50 / 1.50 = 33.3% margin. Going the other direction: Markup = Margin / (1 - Margin). A 40% margin = 0.40 / 0.60 = 66.7% markup.
What markup should I use for my products?▼
It depends on your industry and cost structure. Retail clothing commonly uses 50-100% markup (keystone). Restaurants typically mark up food 300% or more. Electronics might be 5-20%. Your markup needs to cover not just the product cost but also overhead, shipping, returns, and profit — calculate your break-even markup first, then add your desired profit.