Markup Calculator — Calculate Product Markup
Free markup calculator. Calculate the markup percentage and selling price from cost and desired margin.
Formula: (Selling Price - Cost) / Cost × 100
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What Is This Calculator?
Markup is the percentage added to the cost of a product to determine its selling price. Unlike margin (which is based on revenue), markup is based on cost. Understanding the difference between markup and margin is crucial for pricing strategy.
How to Calculate
To calculate markup: 1) Determine the cost of the product. 2) Determine the selling price. 3) Subtract cost from selling price. 4) Divide by cost. 5) Multiply by 100. Formula: Markup % = (Selling Price − Cost) / Cost × 100.
Examples
Example: A product costs $25 and sells for $40. Markup = ($40 − $25) / $25 × 100 = 60%. Note: The profit margin on this same product would be ($40 − $25) / $40 × 100 = 37.5%.
Recommended Tools
QuickBooks can help track markup and margins across your entire product catalog.
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