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.
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)
