BUSINESS FINANCE CHANNEL
Markup Calculator
Calculate product sales prices and net margins based on markup percentages.
Calculator Variables
Calculation Overview
Calculate the selling price and profit margin of an item based on production cost and desired markup.
Mathematical Model & Formula
Selling Price = Cost * (1 + Markup %)
Multiplies item costs by markup thresholds to locate final product prices.
Variables Defined:
Worked Example Scenario
Scenario: Item costing $40 marked up 50%.
- Price = $40 * (1 + 0.50) = $60
- Gross Profit = $20
- Margin = ($20 / $60) * 100 = 33.33%
Result: Selling price is $60.
Frequently Asked Questions
Why are markup and margin different?
Markup is based on cost (how much you add to what you paid), while margin is based on selling price (what percentage of the cash you keep).