Calculator Inputs
$
50
Results
$75.00
Selling Price
$25.00
Profit per Unit
33.3%
Gross Margin
50%
Markup
About This Calculator
Markup vs Margin — Know the Difference
- Markup is the percentage added to cost to get the selling price
- Margin is the percentage of the selling price that is profit
Example: $50 cost + 50% markup = $75 selling price. The margin is ($25/$75) = 33.3%, not 50%. Many businesses confuse these two — the difference can cost you thousands.
Frequently Asked Questions
How do I convert markup to margin?
Margin = Markup / (1 + Markup). So 50% markup equals 33.3% margin. The formula is: Margin% = Markup% / (100 + Markup%) x 100.
What's a typical retail markup?
Clothing: 100-350%. Jewelry: 100-300%. Electronics: 20-40%. Groceries: 10-30%. Restaurants: 200-300% (food cost is ~25-33% of menu price).