How to use this tool
- Choose whether you know the selling price or want a price for a target margin.
- Enter your cost (and the selling price or target margin).
- Read the margin, markup and gross profit. Use the same currency for every figure.
Common retail markups
| Cost | Markup | Selling price | Margin |
|---|---|---|---|
| 100 | 25% | 125 | 20% |
| 100 | 50% | 150 | 33.3% |
| 100 | 100% (keystone) | 200 | 50% |
| 100 | 150% | 250 | 60% |
"Keystone" pricing, doubling the wholesale cost, is a traditional rule in clothing and gift shops. Restaurants often mark food up 200–300%, which gives margins of 67–75% before wages and rent.
Frequently asked questions
What is a 50% markup as a margin?
33.3%.
How do I calculate markup percentage?
(Selling price − cost) ÷ cost × 100.
Is markup the same as margin?
No. Markup is based on cost, margin on selling price, so markup is always the bigger number.
Need more detail? See the full Profit Margin Calculator guide.