MulticalcMarkup Calculator
Enter cost and markup to see selling price.
Markup vs. Margin
Crucial Difference: Many business owners confuse Markup and Margin. This
mistake can lead to lower profits than expected.
Markup
Uses COST as the base.
50%
Markup on $100 Cost = $150 Price
Margin
Uses PRICE as the base.
33.3%
Margin on $150 Price = $50 Profit
Calculation Formulas
To Find Selling Price:
Selling Price = Cost Price × (1 + Markup %)
To Find Gross Profit:
Gross Profit = Selling Price - Cost Price
Frequently Asked Questions
Because Markup is calculated on the lower Cost Price, while Margin is calculated on the
higher Selling Price. To get a 50% Margin, you need a 100% Markup.
Retailers typically use Markup to set prices. Investors and accountants
typically use Margin to measure profitability.
Quick Tips
- Keystoning: Doubling the cost (100% markup) is a common retail strategy called "Keystone Pricing".
- Volume vs Price: Lower markup might lead to higher volume sales, potentially increasing total profit.