Markup Calculator

Formulas

The formulas used in the calculations are:

\[ \text{profit} = \text{revenue} - \text{cost} \]

\[ \text{markup} = 100 \times \frac{\text{profit}}{\text{cost}} \]

If you need the selling price, then use:

\[ \text{revenue} = \text{cost} + \text{cost} \times \frac{\text{markup}}{100} \]

Let's assume the following:

Calculate the profit:

\[ \text{profit} = 50 - 40 = 10 \]

Calculate the markup percentage:

\[ \text{markup} = 100 \times \frac{10}{40} = 25\% \]

Therefore, the markup percentage is 25%.

How do I calculate markup?

To calculate markup by hand:

Determine your COGS (cost of goods sold). For example, $40.
Find your gross profit by subtracting the cost from the revenue. Our product sells for $50, so the profit is $10.
Divide profit by COGS. $10 / $40 = 0.25.
Express it as a percentage: 0.25 × 100 = 25%.

This is how to find markup... or simply use this markup calculator!

What is the markup formula?

The markup formula is as follows:

\[ \text{markup} = 100 \times \frac{\text{profit}}{\text{cost}} \]

If you don't know the profit but only know how much you paid for an item (cost) and sold it for (revenue), substitute profit with the formula:

\[ \text{profit} = \text{revenue} - \text{cost} \]

The markup formula then becomes:

\[ \text{markup} = 100 \times \frac{\text{revenue} - \text{cost}}{\text{cost}} \]

If you need the selling price, then use:

\[ \text{revenue} = \text{cost} + \text{cost} \times \frac{\text{markup}}{100} \]