🏷 Retail Markup & Margin Calculator
Calculate markup, gross margin, and selling price — and understand the difference between the two.
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Markup vs Margin Comparison
| Markup % | Selling Price (on $20 cost) | Gross Margin % | Gross Profit |
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Margin = (Price − Cost) / Price × 100 — percentage of price that is profit
Markup = (Price − Cost) / Cost × 100 — percentage above cost you charge
Markup = (Price − Cost) / Cost × 100 — percentage above cost you charge
Margin vs Markup: Why It Matters
Markup and margin describe the same profit dollars but from different perspectives. A 50% markup on a $20 item gives a $30 selling price — but that is only a 33.3% gross margin, not 50%.
Retailers typically target margins: grocery (1–3%), apparel (50–60%), electronics (5–10%), furniture (40–60%). Using the wrong formula can cause significant underpricing.
Keystone markup (100% markup / 50% margin) is the traditional retail rule of thumb — doubling the wholesale cost to set retail price. Many categories have shifted away from this as e-commerce increased price transparency.