Free markup calculator
A markup calculator turns your cost into a selling price, profit, markup percent, and margin percent. Use the free calculator below to compare markup vs margin, convert between them, and price retail, service, or contractor work more clearly.
Use selling price = cost x (1 + markup %) when you know markup. Use selling price = cost / (1 - target margin %) when you know the margin you want.
Enter your cost, then choose whether you know markup or target margin. Your numbers never leave your browser.
Markup and margin are not the same number. The line below shows how markup converts to margin.
Download the Excel and Google Sheets version so you can keep markup, margin, quantity, total revenue, total profit, and scenario comparisons in one file.
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Markup and margin describe the same profit from two angles. Markup = (price - cost) / cost. Margin = (price - cost) / price. On a $100 item that cost $75, profit is $25: that is a 33% markup but a 25% margin.
Selling price = cost x (1 + markup %). Example: $75 cost at 40% markup = $75 x 1.40 = $105. Use markup mode when you quote from cost-plus pricing.
Selling price = cost / (1 - margin %). Example: $75 cost at a 40% target margin = $75 / 0.60 = $125. The same percentage gives a higher price as margin than as markup.
If you know cost and price, markup % = (price - cost) / cost. This helps check supplier quotes, back into the markup inside a price, or audit whether a quoted price covers overhead.
The same profit looks larger as markup than as margin. Use this quick table when a vendor, contractor, or retail team uses a different pricing language.
| Markup % | Equivalent margin % | Plain-English read |
|---|---|---|
| 10% | 9.1% | Thin add-on margin |
| 20% | 16.7% | Common cost-plus floor |
| 25% | 20.0% | Cleaner service target |
| 50% | 33.3% | Healthy product gross margin |
| 100% | 50.0% | Keystone pricing |
Retailers often use keystone markup, or 100%, to double cost. Contractors typically mark up materials and subcontractor costs 10% to 35% to cover overhead and profit. Use markup mode for cost-plus pricing and margin mode when a target profit margin matters more.
Markups vary by volume, overhead, and competition. Common rules of thumb include grocery 10% to 15%, restaurants around 60% on food, apparel 100% to 250%, jewelry 50% or higher, automotive parts 5% to 30%, and general retail around keystone.
Cost-plus pricing sets price by adding a fixed markup to cost. It is simple and makes sure every sale covers cost plus profit, but it ignores demand and what customers will actually pay. Pair it with competitor prices and perceived value.
Some categories carry high markups because the product is cheap to make but valued for convenience or occasion, like bottled water, movie-theater popcorn, or restaurant drinks. High markup is not the same as high profit after overhead, spoilage, and slow-moving stock.
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same dollar profit is a larger markup than margin.
Multiply cost by one plus the markup. A $75 cost at 40% markup is $75 x 1.40 = $105.
It depends on your industry and overhead. Retail often doubles cost with keystone markup; many trades use 10% to 35%. Price to cover all costs plus your target profit.
Markup = margin / (1 - margin). A 25% margin equals a 33% markup.
Keystone is a 100% markup, doubling the cost to set the price, common in retail.
Yes. If you know cost and price, markup % = (price - cost) / cost, and margin % = (price - cost) / price.
The calculator above is free. If you want a spreadsheet you can customize and keep, these premium Excel and Google Sheets templates go further.
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