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Markup Calculator

Updated June 2026 · By the NumberBench editorial team · How we calculate

Turn cost and markup into a selling price, see the true margin you keep, and check it against the typical gross margin for your industry.

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Selling price—
Profit per unit—
Profit margin—
Markup—

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Price from cost, then check the margin

Markup is how much you add on top of cost; margin is how much of the final price you actually keep. They’re easy to confuse, and the gap is bigger than people expect — a 50% markup is only a 33% margin. This tool converts between them and benchmarks your resulting margin against the typical gross margin for your industry, so you can tell whether you’re priced for profit or leaving money on the table.

How it’s calculated

Price = cost × (1 + markup). Profit = price − cost. Margin = profit ÷ price. The benchmark compares your margin to the median gross margin for the selected industry.

Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.

Worked example

A $40 item at 50% markup sells for $60, a $20 profit and a 33% margin — below the ~38% typical for e-commerce, so there may be room to raise price or trim cost.

Common mistakes

  • Setting price by markup but reporting it as margin — they’re different numbers.
  • Ignoring fees, shipping, and returns that erode the margin you actually keep.
  • Benchmarking a product margin against a company’s net margin instead of gross.

Where it is used

  • Setting retail or wholesale prices from cost.
  • Translating a target margin into the markup to apply.
  • Checking pricing against industry norms.

Frequently asked questions

What's the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of price. A 50% markup on a $40 item is a $20 profit and a $60 price — but that's only a 33% margin.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 100% markup is a 50% margin; a 50% markup is a 33% margin; a 25% markup is a 20% margin.

Is a higher markup always better?

Not necessarily — what matters is the margin you keep after all costs, and whether your price is competitive. Compare your margin to your industry's typical gross margin.