Markup & Margin Calculator
Convert between markup and margin percentages. Calculate selling price, cost, or profit.
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Formulas:
- Markup = (Profit / Cost) × 100
- Margin = (Profit / Selling Price) × 100
- Selling Price = Cost × (1 + Markup/100)
Results
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Common Markup & Margin by Industry
| Industry/Type | Markup | Margin | $100 Cost → Price |
|---|---|---|---|
| Grocery/wholesale | 25% | 20.0% | $125 |
| General retail | 50% | 33.3% | $150 |
| Standard retail | 100% | 50.0% | $200 |
| Fashion/apparel | 150% | 60.0% | $250 |
| Luxury goods | 200% | 66.7% | $300 |
| Jewelry/electronics | 300% | 75.0% | $400 |
Understanding Markup vs. Margin
What is Markup?
Markup is the percentage added to the cost price to arrive at the selling price. It's expressed as a percentage of the cost. For example, if something costs $60 and you sell it for $100, your markup is $40/$60 = 66.7%.
What is Margin?
Margin (or gross margin) is the percentage of the selling price that is profit. Using the same example, if you sell for $100 and make $40 profit, your margin is $40/$100 = 40%.
Why Does This Matter?
Many business owners confuse markup and margin, leading to pricing errors. A 50% markup only gives you a 33.3% margin. If you need a 50% margin, you need a 100% markup. Understanding this difference is crucial for setting profitable prices.
Common Mistake to Avoid
If you want to make 50% on a $100 cost item, don't price it at $150 (50% markup = 33% margin). Price it at $200 (100% markup = 50% margin).
Frequently Asked Questions
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