Cost & Markup
Enter any two values to calculate the third.
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%
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Common Markup Quick Reference
| Markup % | Margin % | If cost = $10 |
|---|
Selling Price
$0
Profit per Unit
$0
Markup %
0%
Profit Margin %
0%
Cost %
0%
Markup vs. Margin: The Key Difference
This is one of the most common confusions in business finance:
- Markup is calculated on COST: Markup % = (Selling Price - Cost) / Cost × 100
- Margin is calculated on REVENUE: Margin % = (Selling Price - Cost) / Selling Price × 100
A 50% markup produces only a 33.3% margin. A 100% markup (doubling your cost) produces a 50% margin. These are NOT interchangeable — confusing them is a costly pricing mistake.
Common Industry Markup Benchmarks
- Retail clothing: 100–300% markup
- Electronics: 10–30% markup
- Restaurants: 200–300% on food cost
- Manufacturing: 50–100% over cost
- Software/SaaS: 200-500%+ (very low marginal cost)