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Markup Calculator

Calculate selling price, profit, or markup percentage from any two values. Enter any two of cost, revenue, markup %, or profit — the rest update instantly.

What Is Markup?

Markup is the amount added to the cost of a product or service to arrive at its selling price. It is expressed as a percentage of the cost — not of the selling price.

Formula:

Markup (%) = (Revenue − Cost) / Cost × 100

Example: You purchase a product for $100 and sell it for $130.

  • Profit = $130 − $100 = $30
  • Markup = $30 / $100 × 100 = 30%

Working Backwards from Any Two Values

Enter any two of the four fields and the calculator fills in the remaining two automatically.

Known valuesComputed values
Cost + RevenueMarkup %, Profit
Cost + Markup %Revenue, Profit
Cost + ProfitRevenue, Markup %
Revenue + Markup %Cost, Profit
Revenue + ProfitCost, Markup %
Markup % + ProfitCost, Revenue

Markup vs Gross Margin

Markup and gross margin both measure profitability on the same sale, but they use different denominators:

MetricFormulaBase
MarkupProfit / Cost × 100Cost
Gross MarginProfit / Revenue × 100Revenue

Example: Cost = $100, Revenue = $130, Profit = $30

  • Markup = 30 / 100 × 100 = 30%
  • Gross Margin = 30 / 130 × 100 = 23.08%

Because revenue is always larger than cost, the markup percentage is always higher than the gross margin percentage for the same transaction. Confusing the two leads to underpricing.

Converting between them:

  • Margin from markup: Margin = Markup / (100 + Markup) × 100
  • Markup from margin: Markup = Margin / (100 − Margin) × 100

Typical Markup by Industry

SectorTypical Markup
Grocery / food retail5–25%
E-commerce20–50%
Construction materials15–30%
Retail clothing50–100% (keystone = 100%)
Restaurants200–300% on food cost
Software / SaaS70–90%+

Sources

Frequently Asked Questions

What is a good markup percentage?

It depends on the industry. Retail clothing commonly uses 50% (keystone markup). Restaurants typically apply 200–300% on food cost. E-commerce sellers usually target 20–50%. The right markup covers all costs and overheads while reaching your profit goal — there is no single universal figure.

What is the difference between markup and gross margin?

Both measure profitability on the same transaction, but they use different bases. Markup = Profit ÷ Cost × 100 (cost as the base). Gross Margin = Profit ÷ Revenue × 100 (revenue as the base). Because revenue is always larger than cost, the markup percentage is always higher than the gross margin percentage for the same transaction. A 30% markup equals a 23.08% gross margin.

Can markup be negative?

Yes. A negative markup means you are selling below cost — revenue is less than cost. This happens during clearance sales, liquidations, or customer-acquisition strategies where short-term losses are acceptable. The calculator accepts and displays negative markup values.

How do I calculate markup from cost and selling price?

Markup (%) = (Selling Price − Cost) / Cost × 100. For example, if you paid $80 for an item and sell it for $120: (120 − 80) / 80 × 100 = 50% markup.

What is keystone markup?

Keystone markup is a 100% markup — the selling price is exactly twice the cost. It has been a traditional retail benchmark because it is easy to calculate (just double the cost) and typically covers operating expenses while yielding a reasonable profit. A 100% markup equals a 50% gross margin.