To use this online markup calculator just enter the cost price ($) of the product and the selling price ($) you want to sell at. The result will be the markup percentage.
To calculate the markup percentage use the formula:
Markup Percentage = (Selling Price – Cost) / Cost x 100
- Take the sales price and subtract the unit cost. This gives you the markup amount.
- Then take the markup amount and divide it by the unit cost.
- Finally, multiply by 100 to get the markup percentage.
Example Calculation
For example, if a product costs $50 to make and the selling price is $75, the markup percentage would be:
($75 – $50) / $50 = 0.50 0.50 x 100 = 50%
So in this case, the markup percentage is 50%.
Markup percentage allows retailers to understand how much they are increasing prices over costs and manage pricing decisions to maximize sales and profits.
Selling Price Calculator
Use this Selling Price Calculator to enter the cost price ($) and the target markup (%). The result will be the selling price ($)
To calculate the selling price from the markup use this formula:
Selling Price = Cost + (Cost × Markup Percentage)
- Determine the cost of the product or service (the cost to the business).
- Decide on the desired markup percentage. The markup percentage is the profit as a percentage of the cost.
- Finally, add the cost price and the markup in dollars to get the selling price.
Example Calculation
For example, if the cost of the product is $50 and the desired markup is 40%:
Selling Price = $50 + ($50 × 0.40)
= $50 + $20
= $70
So if the cost is $50 and the markup is 40%, the selling price should be $70.
What is the formula to calculate retail markup?
The retail markup formula is: Markup = (Price – Cost) / Cost
What is considered a good retail markup percentage?
While there is no universally ideal markup percentage, many businesses aim for a 50% markup, also known as “keystone” pricing. This means charging a price 50% higher than the cost of the item. Markup percentages can vary significantly by industry. Retail grocers typically have markups under 15%, while restaurants may markup food by 60% and some beverages by up to 500%.
How do you calculate the selling price given the cost and markup?
The formula to calculate the selling price is: Selling Price = Cost + (Cost x Markup)
How do you calculate the selling price with a 20% markup?
To calculate the selling price with a 20% markup, multiply the original cost by 1.2. For example, if a product costs $50 to make, the selling price with a 20% markup would be $50 x 1.2 = $60.
What is the difference between retail margin and retail markup?
- Retail margin is the profit as a percentage of the selling price: Margin = (Price – Cost) / Price
- Retail markup is the profit as a percentage of the cost: Markup = (Price – Cost) / Cost
How do you calculate successive markups?
When there are multiple markups applied, you can use the formula: Successive Markup = X + Y – (XY)/100, where X is the first markup percentage and Y is the second markup percentage.
What are some common retail markup strategies?
Common strategies include cost-plus pricing, value-based pricing, competitive pricing, promotional pricing, and keystone pricing