What is markup and how is it different from margin?

Markup is profit expressed as a percentage of cost; margin is profit as a percentage of revenue. A 50% markup on a $100 cost gives a $150 price — but that's a 33.3% margin, not 50%. They describe the same trade from two different reference points.

How do I convert margin to markup?

Use Markup = Margin ÷ (1 − Margin). A 40% margin target converts to 0.40 ÷ 0.60 = 66.7% markup. A 50% margin target needs a 100% markup (selling price = 2× cost).

What is a typical retail markup?

Apparel often uses keystone pricing (100% markup, 2× cost). Grocery runs at 5–25%, restaurants at 200–300% on alcohol, and luxury goods can exceed 400%. E-commerce private label commonly targets 60–150% markup to absorb ads and platform fees.

How does markup affect my Amazon FBA pricing?

FBA fees (referral + fulfillment + storage) often eat 25–35% of the selling price. If your markup is below ~70%, the post-fee margin can vanish. Calculate your Amazon FBA profit to see the real number after fees.

Should I price by markup or by margin?

Use markup at the cash register (it's easy: cost × multiplier = price). Use margin in financial reporting and pitch decks (investors and accountants think in margins). Pick one for daily operations and stay consistent so you don't confuse your team.

Markup Calculator — Free Markup Percentage Tool (2026)

Free markup calculator — calculate markup percentage, selling price & profit margin instantly. No signup needed. 100% private, client-side calculator for retailers.

Last Updated: March 25, 2026

Cost ($/£/€)

Selling Price ($/£/€)

Instant Results

66.67%

Markup

40.00

Profit

40.00%

Margin

How to Use

Enter your unit cost (what you paid for the product) in the Cost field.
Enter your selling price in the Selling Price field.
Read your markup percentage, dollar profit, and equivalent profit margin on the right.
Want to convert a margin target into a markup target? Use our Profit Margin Calculator — the two metrics move in opposite directions on the same trade.

Formula Explained

Markup (%) = ((Selling Price − Cost) / Cost) × 100

Selling Price: = Final price charged to the customer
Cost: = Your unit cost — what you paid the supplier or to produce the item

Worked example: Cost $60, selling price $100. Markup = ($100 − $60) / $60 = 0.6667 = 66.67%. That same trade is a 40% margin.

Markup Calculator — Free Markup Percentage Tool (2026)

How to Use

Formula Explained

References

Frequently Asked Questions