Markup Calculator
Calculate the markup percentage, gross profit, and revenue based on cost and selling price. Perfect for business owners and retailers to determine pricing strategies.
Markup Results
| Markup Percentage | 50% |
|---|---|
| Margin Percentage | 33.33% |
| Gross Profit | $50.00 |
| Cost | $100.00 |
| Revenue | $150.00 |
Margin Results
| Margin Percentage | 33.33% |
|---|---|
| Markup Percentage | 50% |
| Gross Profit | $50.00 |
| Cost | $100.00 |
| Revenue | $150.00 |
About Markup Calculator
The markup calculator is a business tool that helps you determine the selling price of your product based on the cost and your desired profit margin. Markup is the difference between the selling price and cost as a percentage of the cost.
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. For example, if a product costs $100 and the selling price is $150, the markup is 50%.
Markup vs. Margin
While markup is calculated as a percentage of the cost, margin is calculated as a percentage of the selling price. Margin represents the portion of the selling price that turns into profit.
How to Calculate Markup
The formula for markup percentage is:
Markup Percentage = (Revenue - Cost) / Cost × 100
For example, if you buy a product for $100 and sell it for $150:
(150 - 100) / 100 × 100 = 50% markup
How to Calculate Margin
The formula for margin percentage is:
Margin Percentage = (Revenue - Cost) / Revenue × 100
Using the same example:
(150 - 100) / 150 × 100 = 33.33% margin
Why Markup Matters
Understanding markup is crucial for businesses to:
- Set appropriate selling prices
- Ensure profitability
- Compete effectively in the market
- Plan for growth and expansion