Pricing Details
OR
Profit per Unit
$50
Cost Price
$100
Selling Price
$150
Markup %
50%
Profit Margin
33.33%
What is Markup?
Markup is the amount added to the cost price of goods to cover overhead and profit. It's expressed as a percentage of the cost price and is commonly used in retail and wholesale businesses.
Markup vs Profit Margin
While often confused, these are different calculations:
- Markup: Based on cost price. Formula: (Selling Price - Cost) / Cost × 100
- Profit Margin: Based on selling price. Formula: (Selling Price - Cost) / Selling Price × 100
Common Markup Percentages by Industry
- Grocery: 15-20%
- Clothing: 50-100%
- Electronics: 10-30%
- Jewelry: 100-300%
- Restaurants: 60-300%