Util Tools Free Markup Calculator Online
Calculate markup from cost and price, find the selling price for any target markup, and see exactly why a 50% markup is not a 50% margin.
Markup
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- Profit
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- Margin %
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- Revenue multiple
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- Selling price
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Markup vs margin — why 50% markup ≠ 50% margin
Markup is measured against cost. Margin is measured against the selling price. Same dollars, different base.
Markup
Cost $100 → sell $150. Profit $50.
$50 ÷ $100 cost = 50% markup
Margin
Same item: sell $150, profit $50.
$50 ÷ $150 price = 33.3% margin
A 50% markup is always a 33.3% margin. To convert: Margin = Markup ÷ (1 + Markup).
Frequently Asked Questions
- What is markup?
- Markup is the amount added to the cost price to determine the selling price, expressed as a percentage of the cost. A 50% markup on a $100 item means selling it for $150.
- What is the difference between markup and margin?
- Markup is calculated on cost. Margin is calculated on selling price. A 50% markup equals a 33.3% margin. They are different percentages of different base values, which causes common confusion in pricing.
- How do I calculate markup percentage?
- Markup % = ((Selling Price − Cost) ÷ Cost) × 100. For example, a product costing $40 sold for $60: ((60 − 40) ÷ 40) × 100 = 50% markup.
- What is a standard retail markup?
- Retail markups vary widely. Grocery retail typically marks up 15–25%. Clothing retail uses 50–100% (keystone markup). Electronics range from 10–30%. Jewelry can be marked up 50–100%+.
- What is keystone pricing?
- Keystone pricing is a retail strategy of marking up products by exactly 100% (doubling the wholesale cost). It was the historical standard for retail pricing and remains common in fashion and apparel.