Markup Calculator
A markup calculator computes the optimal retail selling price, target gross revenue, and profit percentage from wholesale production costs. Applying the formula Price = Cost × (1 + Markup%), it confirms that a 50% markup on a product costing $100 establishes an optimal selling price of $150.
By Maya Chen (Personal Finance Editor) · Reviewed by Daniel OkoroUpdated · Published
Cost of Goods
$
0
Selling Price
$
0
GROSS PROFIT MARGIN
Profit: $0.00 (Markup: 0.0%)
How Does the Markup Calculator Work?
- Enter the cost of the item.
- Enter your desired markup percentage.
- Calculate the required retail price and resulting profit.
What Is the Markup Formula?
Selling Price = Cost × (1 + Markup% / 100)
Cost multiplied by (1 + markup rate).
Variables
Cost:Product wholesale cost
Markup%:Desired markup percentage
How Do You Calculate Markup Step by Step?
A product costs $50 with a target 40% markupCost: $50.00
Markup: 40%
Markup dollar amount: $50 × 0.40 = $20
Selling price: $50 + $20 = $70
Equivalent margin: ($20 / $70) × 100% = 28.57%
Final Solution:Selling Price: $70.00 (Profit: $20.00)
Profit margin vs markup on a $100 cost sold for $150
| Metric | Divides profit by | $100 cost, $150 price |
|---|---|---|
| Markup | Cost ($100) | 50% |
| Margin | Price ($150) | 33.3% |
Markup Questions and Answers
Use the formula: Margin = Markup ÷ (1 + Markup). A 50% markup equals 0.50 ÷ 1.50 = 33.33% margin.
Where Do These Markup Standards Come From?
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