Markup Calculator
Calculate retail selling prices, gross profits, and comparative margins from base cost prices.
Pricing Breakdown
Recommended Selling Price
$70.00
Gross Profit
$20.00
Retail Metrics Comparison
| Markup Percentage | 40.00% |
| Gross Margin Percentage | 28.57% |
| Cost Price Baseline | $50.00 |
Markup vs. Margin: What is the Difference?
While often used interchangeably in casual speech, **Markup** and **Margin** represent completely different mathematical proportions of business profitability:
1. Profit Markup:
Markup expresses the profit made relative to your **Cost Price**. It is the markup multiplier added on top of your supply costs:
Markup (%) = [ (Selling Price - Cost Price) / Cost Price ] * 100
Selling Price = Cost Price * (1 + Markup / 100)
Selling Price = Cost Price * (1 + Markup / 100)
2. Gross Margin:
Margin expresses the profit made relative to your final **Selling Price**. It represents the share of revenue that is kept as profit:
Margin (%) = [ (Selling Price - Cost Price) / Selling Price ] * 100
Selling Price = Cost Price / (1 - Margin / 100)
Selling Price = Cost Price / (1 - Margin / 100)
Key Takeaway: Margin can never exceed 100%, since you cannot keep more than 100% of your sales revenue. However, Markup can grow infinitely (e.g. buying for $1 and selling for $5 is a 400% markup, but only an 80% margin).