Question 1

What is the difference between markup and margin?

Accepted Answer

Markup is calculated based on cost price (Selling Price = Cost × (1 + Markup%)). Margin is calculated based on selling price (Margin% = (Selling Price - Cost) / Selling Price × 100). A 50% markup equals a 33.3% margin. Confusing them leads to underpricing.

Question 2

How do I calculate markup percentage?

Accepted Answer

Markup% = (Selling Price - Cost) / Cost × 100. For example, if you buy an item for $60 and sell it for $100: ($100 - $60) / $60 × 100 = 66.67% markup.

Question 3

What is a good markup percentage?

Accepted Answer

Typical markups vary by industry: groceries 10-15%, retail clothing 50-100%, restaurants 200-300% (food cost), electronics 20-40%, jewelry 100-300%. The right markup depends on your costs, competition, and target profit margin.

Question 4

How do I convert markup to margin?

Accepted Answer

Margin% = Markup% / (1 + Markup%). For example, 50% markup = 50 / (1 + 0.50) = 33.33% margin. Conversely, Markup% = Margin% / (1 - Margin%). This calculator handles both conversions automatically.

🏷️ Markup Calculator

Calculate Selling Price

Find Markup from Cost & Selling Price

Markup ↔ Margin Converter

📊 Results

💡 Markup vs Margin — Why It Matters