Softonic

Markup Calculator

Step 1 / 3 Sell price
Next

Enter any two of cost, selling price and markup percentage and the calculator returns the third, plus the gross margin percentage (which is not the same number). The tool also shows the full markup-to-margin conversion so you don’t confuse the two when quoting a supplier (who thinks in markup) against a P&L (which reports in margin).

How to calculate markup

  1. 1

    Enter cost

    Your cost of goods per unit: wholesale, landed cost, whatever you're pricing off.

  2. 2

    Enter markup %

    The percentage you want to add on top of cost.

  3. 3

    Read selling price

    Selling price = cost × (1 + markup %).

  4. 4

    See margin

    The equivalent gross margin is shown alongside: useful for comparing to your P&L.

Markup vs. margin: they’re not the same

  • Markup is measured against cost: markup % = (price − cost) / cost × 100.
  • Margin is measured against price: margin % = (price − cost) / price × 100.

A 50% markup is a 33.3% margin. A 100% markup is a 50% margin. Retailers typically think in markup; finance reports and MBA-style P&Ls speak margin.

Conversion chart

Markup % Margin %
10 9.09
20 16.67
25 20.00
33 24.81
50 33.33
75 42.86
100 50.00
150 60.00
200 66.67

Worked example

  • Cost: $40 per unit.
  • Desired margin: 40%.
  • Required selling price: 40 / (1 − 0.40) = $66.67.
  • Implied markup: (66.67 − 40) / 40 × 100 = 66.67%.

If a supplier quotes a 40% markup and you need 40% margin, you’re underpricing, you need to mark up by 66.67%.

Pricing scenarios

  • Retail apparel often runs 50–60% margins (100–150% markup).
  • Grocery staples run 1–5% margins, razor thin.
  • Jewelry and specialty items can exceed 300% markup.
  • B2B wholesale typically 25–40% margins, varies by industry.
  • Restaurants: food cost is ~28–32% (68–72% margin gross), but labor and overhead eat most of it.

Break-even check

Don’t price based on markup alone. Factor in returns, shipping, payment processing fees (2.5–3.5%), and fixed costs. A 30% markup can turn into a loss when returns hit 20% and cards eat 3%.

Frequently Asked Questions

Because they use different denominators. Markup divides by cost; margin divides by price. For the same absolute profit, the two numbers are always different, markup is always the larger percentage.

Traditional retail shorthand for 100% markup (double the wholesale cost). It produces a 50% margin and is the baseline in many brick-and-mortar categories.

Suppliers and merchandising teams use markup. Finance, leadership and investors use margin. If the audience isn’t clear, state which one you mean, “50% markup on cost” vs “50% gross margin”.

No. The calculator works on pre-tax figures. Add sales tax or VAT separately, they’re a pass-through, not part of markup.

Yes. Enter cost and the margin you want; the tool returns the price you need to charge: price = cost / (1 − margin%).

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