Markup Calculator
Calculate markup percentage and profit based on cost and selling price.
Understanding Markup
Markup is the percentage increase from the cost price to the selling price. It helps determine how much profit you make on a product relative to its cost. While profit margin measures profit as a percentage of revenue, markup measures profit as a percentage of cost.
Markup Formula
Markup (%) = ((Selling Price – Cost Price) / Cost Price) × 100
Example Calculation
If the cost price is $50 and the selling price is $75, then:
Markup = ((75 – 50) / 50) × 100 = 50%.
This means the product is priced 50% above its cost.
Why Markup Matters
- Ensures your products are priced to cover costs and generate profit
- Helps track pricing consistency across your catalog
- Provides insights into how discounts affect profitability
- Assists in investment planning for inventory and expansion
How to Use This Calculator Effectively
- Enter your cost price and selling price
- Click calculate
- Review your markup percentage
Pricing Strategy Tips
- Include all costs
- Test different markups
- Compare pricing strategies
- Recalculate regularly