Calculate markup percentage from cost and selling price. Free tool with markup formula, margin vs markup comparison, and pricing examples.
Markup is the amount added to the cost price to determine the selling price. It's expressed as a percentage of the cost.
Enter your cost and desired selling price to calculate markup percentage.
| Markup | - |
| Margin | - |
| Multiplier | - |
Markup uses cost as the denominator, while margin uses price. A 50% markup = 33% margin.
Get our free guide with markup formulas, pricing strategies, and industry benchmarks.
Markup is a pricing strategy that adds a percentage to the cost of goods. It ensures you cover costs and generate profit. Understanding markup is essential for retail, wholesale, and service businesses.
Example 1: Retail Markup
Cost: $50 | Selling Price: $75
Markup = (($75 - $50) / $50) × 100% = 50% markup
Margin = (($75 - $50) / $75) × 100% = 33% margin
Example 2: Keystone Pricing
Cost: $100 | Selling Price: $200
Markup = (($200 - $100) / $100) × 100% = 100% markup
This is called "keystone" pricing in retail
Markup and margin are often confused, but they measure different things. Markup is based on cost (how much you add to the cost), while margin is based on selling price (what percentage of the price is profit). For example, a 50% markup equals a 33% margin.
How do I calculate markup in Excel?
Use the formula: =((Selling_Price - Cost) / Cost) * 100. This gives you the markup percentage based on cost.
What is a good markup percentage?
A good markup varies by industry. Retail typically uses 50-100% markup. Restaurants use 200-300% on food. Wholesale is usually 15-30%. Research your industry's standard markup.
How to calculate selling price from cost and markup?
Use the formula: Selling Price = Cost × (1 + Markup%). For example, with $50 cost and 50% markup: $50 × 1.50 = $75 selling price.