Markup vs Margin: Difference, Chart and Calculator
By mise · Updated September 29, 2026
Quick answer: markup is based on cost (price = cost × multiplier); margin is based on price (margin = (price − cost) ÷ price). A 30% food cost equals a 3.33× markup and a 70% gross margin.
Markup and margin get mixed up constantly, and the mix-up costs money: a 30% markup is not a 30% margin.
| Cost % | Markup | Gross margin |
|---|---|---|
| 25% | 4.00× | 75% |
| 30% | 3.33× | 70% |
| 35% | 2.86× | 65% |
| 50% | 2.00× | 50% |
Price from cost
Price: —
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Frequently asked questions
How do I convert markup to margin?
Margin = 1 − 1 ÷ markup (as a multiplier).
What markup do restaurants use?
About 3–4× on food and 4–6× on drinks.
What margin do retailers use?
Grocery 25–35%, apparel 50–60%, cosmetics 40–60%.
How much does mise cost?
A 7-day free trial, then US$33 a month per location (£26 in the UK).