Markup Percentage Calculator
Find the markup percentage from your cost and selling price — plus the profit per unit and the margin the same sale produces.
How it works
Markup % = (price − cost) ÷ cost × 100 · Margin % = (price − cost) ÷ price × 100
Markup expresses profit as a percentage of cost — how much you added on top of what you paid. It is found by dividing the profit (price minus cost) by the cost. The same sale always shows a smaller margin than markup, because margin divides that profit by the larger selling price. Converting between them: margin = markup ÷ (1 + markup).
Worked example
Buying an item for $80 and selling it for $100 is a $20 profit. As a markup that is 20 ÷ 80 = 25%; as a margin it is 20 ÷ 100 = 20% — the same dollars against two different bases.
Frequently asked questions
How do I calculate markup percentage?
Subtract cost from price to get profit, then divide by the cost and multiply by 100. A $100 price on an $80 cost is (100 − 80) ÷ 80 = 25% markup.
Why is markup higher than margin?
They divide the same profit by different bases: markup divides by the smaller cost, margin by the larger price. So markup always comes out as the bigger percentage. A 25% markup equals just a 20% margin.
What is keystone markup?
Keystone pricing is a 100% markup — doubling the cost to set the price. It is a common retail baseline and produces exactly a 50% margin.
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Educational estimate, not financial advice.