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Markup Calculator

Calculate the selling price from cost and desired markup percentage.

Setting the right price is critical for business profitability. The markup calculator helps you determine the selling price by applying a percentage increase to your cost. This is the most common pricing method in retail and wholesale businesses.

The formula is simple: Selling Price = Cost + (Cost x Markup%). If an item costs you $45 and you want a 50% markup, your selling price would be $67.50, giving you a profit of $22.50 per unit.

Common markup percentages vary by industry. Restaurants typically mark up food 300%, jewelry 50-100%, clothing 100-300%, and electronics 5-50%. The right markup depends on your overhead costs, competition, perceived value, and target market.

This calculator also shows the equivalent profit margin, which is useful for financial reporting. A 50% markup corresponds to a 33.3% profit margin — an important distinction when comparing profitability metrics or communicating with investors and financial partners.

Frequently Asked Questions

What is a standard markup percentage?
It varies by industry. Common markups include: grocery (5-25%), electronics (5-50%), clothing (100-300%), restaurants (200-400%), and jewelry (50-100%). The right markup covers your costs and generates your target profit.
How is markup different from margin?
Markup is the profit as a percentage of the cost price. Margin is the profit as a percentage of the selling price. A 100% markup equals a 50% margin. To convert: margin = markup / (100 + markup) × 100.
How do I calculate cost from selling price and markup?
Divide the selling price by (1 + markup percentage / 100). For example, if the selling price is $67.50 with a 50% markup: $67.50 / 1.50 = $45 cost.
Markup Calculator
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