SPONSORED

Markup Calculator

LAST UPDATE: August 21st, 2018

Calculator

What is markup?

Markup is the percentage difference from the cost to the sale price.

Formula

Price = Cost / (1 – (Gross Margin/100%))

Gross Profit (Dollars) = Price x (Gross Margin/100%)

Markup = (Price / Cost) x 100%

Example

A product has a price of $25 and sells at a gross margin of 75%.

Price = $25 / (1 – (75% / 100%)) = $25 / (1 – 0.75) = $25 / 0.25 = $100

Gross Profit (Dollars) = $100 x (75% / 100%) = $100 x 0.75 = $75

Markup = ($100 / $25) x 100% = 4 x 100% = 400%

Sources and more resources