What is the markup formula?

The markup formula is: Markup % = ((Selling Price - Cost) / Cost) × 100. For example, if a product costs $50 and you sell it for $75, your markup is (($75 - $50) / $50) × 100 = 50%. To calculate selling price from markup: Selling Price = Cost × (1 + Markup % / 100).

What's the difference between markup and margin?

Markup and margin are often confused but calculate profit differently. Markup is profit as a percentage of COST (Markup = Profit / Cost). Margin is profit as a percentage of SELLING PRICE (Margin = Profit / Selling Price). A 50% markup equals a 33.3% margin. A 100% markup equals a 50% margin.

What is a good markup percentage?

Good markup varies by industry: Retail clothing typically uses 50-100% (keystone markup), grocery stores use 5-25%, restaurants mark up food 200-400% and wine 200-300%, wholesale/distribution uses 10-30%, and contractors typically add 15-35% for overhead and profit.

How do I calculate markup from selling price and cost?

To find markup percentage when you know the selling price and cost: Markup % = ((Selling Price - Cost) / Cost) × 100. For example, if you sell for $75 and cost is $50: (($75 - $50) / $50) × 100 = 50% markup.

What is keystone markup?

Keystone markup (or keystone pricing) is a 100% markup, meaning you double the wholesale cost to set the retail price. If a product costs $25 wholesale, keystone pricing sets it at $50 retail. This is common in retail but may be too high or low depending on your industry.

How do I convert markup to margin?

To convert markup percentage to margin percentage: Margin % = Markup % / (100 + Markup %). For example, a 50% markup converts to: 50 / (100 + 50) = 50 / 150 = 33.3% margin. Our calculator does this conversion automatically.

Markup Calculator

Calculate markup percentage, selling price & profit margin instantly. Free markup calculator with industry benchmarks. Convert markup to margin in seconds.

Enter Your Values

Product Cost*

Your cost to acquire or produce the item (wholesale price, manufacturing cost, etc.)

Markup Percentage*

Desired markup on cost (e.g., 50% markup on $100 cost = $150 selling price)

Quantity

units

Calculate total profit for multiple units

Formula

Selling Price = Cost × (1 + Markup% / 100)

Markup is applied to your cost to determine selling price. The resulting margin shows what percentage of your selling price is profit. A 50% markup yields a 33.3% margin because markup is based on cost while margin is based on selling price.

Recommended Selling Price$75

$75.00 — Healthy 50% markup typical for retail. 33.3% margin.

Cost Per Unit$50

Gross Profit per Unit$25

Profit Margin33.3%

Markup to Margin50% markup = 33.3% margin

Total Revenue$7,500

Total Cost$5,000

Total Profit$2,500

Industry BenchmarkStandard retail level

Markup Benchmarks by Industry

Restaurant/Jewelry200%+ markup — High margin luxury/hospitality

> $200

Retail (Keystone)100-200% markup — Double the cost (keystone)

$100 – $200

Standard Retail50-100% markup — Typical retail pricing

$50 – $100

Wholesale/Distribution10-50% markup — Volume-based business

$10 – $50

Grocery/CommodityUnder 10% markup — Thin margins, high volume

$0 – $10

Source: Industry Pricing Standards 2024

How to Calculate Markup

Enter your product cost (wholesale price or manufacturing cost)
Input your desired markup percentage
Optionally enter quantity for total profit calculation
View your calculated selling price, profit, and margin
Compare against industry benchmarks to validate pricing
Get AI recommendations for your full catalog

Markup Benchmarks by Industry

50-100% markup

Retail Clothing

5-25% markup

Grocery/Supermarket

200-400% markup

Restaurant Food

200-300% markup

Restaurant Wine

10-30% markup

Wholesale/Distribution

15-35% markup

Contractor Services

10-30% markup

Electronics Retail

100-300% markup

Jewelry

Source: Industry Pricing Standards 2024

Markup Calculator

Markup Benchmarks by Industry

How to Calculate Markup

Markup Benchmarks by Industry

Frequently Asked Questions

What is the markup formula?

What's the difference between markup and margin?

What is a good markup percentage?

How do I calculate markup from selling price and cost?

What is keystone markup?

How do I convert markup to margin?