 • Business and Technology in Plain English
• Since 1991

# Free business financial calculators to measure and manage your profitable growth

## Financial terms and math don't have to be a mystery

Breakeven
Gross Margin
Cost Markup
Set Price Using Markup
Return on Investment (ROI)

Sales and Marketing

SaaS Metrics
Customer Acquistion Cost (CAC)
Customer Churn
Monthly Recurring Revenue (MRR)
SaaS Company Viability

## What is Markup?

Markup is the percentage over and above the cost of the product. It is used to determine the ideal selling price for the product or service.

 To calculate Markup, enter the Price and COGS. To calculate the Price from Markup, enter the COGS and Markup % Price \$ COGS \$ Markup % (no decimal)

## How to Calculate Markup

Determine the following two things:

• 1. Your variable cost for the item.

• 2. The selling price for the item..
•

Example --

Price = \$250
Cost = \$ 50
Markup %=- 400

400% = ((\$250 - \$50) / \$50 x 100)

## How to Calculate Price from Cost Markup

Example --

\$250 = \$50 x 4.00 + \$50

### Simple Gross Margin Formula Cheatsheet

To calculate markup percent:

• (Selling price - cost) / cost x 100) = markup percentage

• To calculate price from the markup percent:

• Selling price = cost + (cost x markup percentage/100)

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