Business Tool
Markup Calculator
Calculate product markup percentage, selling price, and gross profit based on unit cost. Solve for any missing variable to optimize pricing.
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Interactive Markup Calculator Workspace
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Calculation Breakdown Summary
Selling Price$70.00
Markup Percentage40.00%
Gross Profit$20.00
Gross Margin %28.57%
Mathematical Formula & Variables
Equation Model
Markup % = ((Selling Price - Cost) / Cost) × 100Markup represents the ratio of profit to the purchase cost of an item. It shows how much more you charge for a product than it cost you to acquire or produce it.
Variable Definitions
| Symbol | Description |
|---|---|
| Markup % | Percentage added to cost to determine selling price |
| Cost | The absolute purchase cost or production cost of the unit |
| Selling Price | The final retail price charged to customers |
| Gross Profit | The difference between selling price and cost |
How to Use the Markup Calculator
- Enter the Unit Cost of the product.
- Enter the target Markup Percentage (e.g., 50 for 50%).
- The calculator will immediately solve for the optimal Selling Price and display the Gross Profit Amount and Gross Margin.
- Alternatively, enter any two values (such as Cost and Selling Price) to calculate the corresponding markup and margin.
Practical Example Calculation
Scenario Context: A hardware supplier buys boxes of brass screws for $8.00 per unit. They want to apply a 45% markup on cost. What is the selling price?
Step 1: Identify Cost = $8.00 and target Markup = 45% (0.45).
Step 2: Calculate Markup Amount = Cost × Markup Rate = $8.00 × 0.45 = $3.60.
Step 3: Add markup to cost: Selling Price = Cost + Markup Amount = $8.00 + $3.60 = $11.60.
The screws should be priced at $11.60 to maintain a 45% markup, resulting in $3.60 gross profit.
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