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Percent Markup Calculator

Calculates percent markup using Markup % = (Price - Cost) / Cost x 100, live in your browser.

Last updated: July 2026 · Free · No sign-up required

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About the Percent Markup Calculator

Every result on this page comes from a real formula — Markup % = (Price – Cost) / Cost x 100; Price = Cost x (1 + Markup% / 100) — computed live in your browser the moment you press the button.

Scroll past the calculator for a quick-reference table, a step-by-step methodology with a fully worked example, and answers to the questions people most often ask about percent markup calculator.

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Quick reference

Markup %Multiplier on costEquivalent margin
10%x 1.109.1%
25%x 1.2520.0%
50%x 1.5033.3%
100% (keystone)x 2.0050.0%
150%x 2.5060.0%

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percent How the math works

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Interpretation guide

If you know…Compute
Cost & markup %Price = cost x (1 + markup/100)
Cost & priceMarkup % = (price - cost) / cost x 100
Markup % → margin %Margin = markup / (1 + markup)
Margin % → markup %Markup = margin / (1 - margin)

Formula & methodology

Formula: Markup % = (Price - Cost) / Cost x 100; Price = Cost x (1 + Markup% / 100)

How percent markup works

Markup is profit expressed as a percentage of cost (not of the selling price — that is margin). It tells you how much you add on top of what an item cost you.

Example

An item costs $40 and you apply a 60% markup. Price = 40 x (1 + 0.60) = 40 x 1.60 = $64. Your profit is $24, which is a 60% markup on cost but a 37.5% margin on the $64 price.

Confusing markup with margin is the most common pricing error: a 50% markup is only a 33.3% margin. Use the conversion rows above to translate between the two.

Frequently asked questions

How do you calculate percent markup?
Subtract the cost from the selling price, divide by the cost, and multiply by 100: markup % = (price - cost) / cost x 100. For example, an item that costs $40 and sells for $64 has a markup of (64 - 40) / 40 = 60%. To go the other way, multiply the cost by (1 + markup/100) to get the price.
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is the same profit as a percentage of the selling price. Because the selling price is larger than the cost, the margin percentage is always smaller. A 50% markup equals a 33.3% margin, and a 100% (keystone) markup equals a 50% margin.
What is keystone markup?
Keystone pricing is a 100% markup — you double the cost to set the retail price. It is a long-standing retail default that builds in a 50% gross margin to cover overhead, shrinkage, and profit. Many retailers start from keystone and adjust up for slow-moving or premium goods and down for competitive commodities.
How do I convert markup to margin?
Use margin = markup / (1 + markup), with both as decimals. A 25% markup becomes 0.25 / 1.25 = 0.20, or a 20% margin. Going the other way, markup = margin / (1 - margin), so a 40% margin needs a 0.40 / 0.60 = 66.7% markup.
What markup percentage should I use?
It depends on your industry, overhead, and competition. Grocery runs on thin 10-15% markups at high volume, apparel and gifts often use 100%+ keystone, and restaurants mark food up 200-300% to cover labor and waste. Work backward from the margin you need to cover all costs and still profit, then check it against competitor prices.
What's the difference between markup and margin?
Markup is profit over cost; margin is profit over selling price. A $50 cost sold at $75 is a 50% markup but only a 33.3% margin — same dollars, different base. Mixing them up overstates profitability, and it's the most common pricing spreadsheet bug there is.
What is a typical retail markup?
The traditional 'keystone' is 100% markup — retail at double the wholesale cost — common in apparel and gifts. Grocery runs far thinner (often 10–30% markup on staples) while jewelry and eyewear can exceed 200%. Use the calculator to translate whatever markup you're quoted into the margin it actually leaves after costs.
How do I reverse a markup to find the original cost?
Divide the selling price by (1 + markup). An item selling for $91 at a 30% markup cost 91 ÷ 1.30 = $70. Don't subtract 30% of the selling price — that computes $63.70 and undershoots, because the 30% was applied to cost, not price.

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