Markup percentage formula

Markup is the percentage you add on top of cost to set a price. It is not the same as profit margin. Use the calculator to go from cost and markup to price and margin, or the other way around.

The formula

Markup % = (Price − Cost) ÷ Cost × 100
Price = Cost × (1 + Markup)

Worked example: 50% markup

Your cost is $50. You want a 50% markup.

Price: $50 × 1.50 = $75
Profit: $75 − $50 = $25
Markup check: $25 ÷ $50 = 50%
Margin on the same sale: $25 ÷ $75 = 33.33%

Worked example: 25% markup

Cost $40, markup 25%: price = $40 × 1.25 = $50. Profit $10, margin $10 ÷ $50 = 20%. This pair (25% markup, 20% margin) is the one people most often mix up.

Common retail markups, as margins

Markup	Price on a $100 cost	Margin
25%	$125	20%
50%	$150	33.33%
100%	$200	50%

The full table is on the margin and markup conversion chart. For the difference in words, see margin vs markup.

Questions people ask

What is the markup percentage formula?

Markup % = (Selling price − Cost) ÷ Cost × 100. A $50 cost and $75 price is $25 profit and a 50% markup.

How do I calculate selling price from markup?

Selling price = Cost × (1 + Markup). A $50 cost with a 50% markup sells at $50 × 1.50 = $75.

How do I convert a markup to a margin?

Margin = Markup ÷ (1 + Markup). A 50% markup is 0.50 ÷ 1.50 = 33.33% margin. A 25% markup is a 20% margin.