Markup Calculator

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Markup Calculator
Calculate Markup Percentage (from Cost & Revenue)Calculate Revenue & Profit (from Cost & Markup %)Calculate Cost (from Revenue & Markup %)
Results:
function updateFields(){var mode=document.getElementById('given_data').value;var r1=document.getElementById('row1');var r2=document.getElementById('row2');var r3=document.getElementById('row3');var l1=document.getElementById('label1');var l2=document.getElementById('label2');var l3=document.getElementById('label3′);r1.style.display='table-row';r2.style.display='table-row';r3.style.display='table-row';if(mode==='markup'){l1.innerHTML='Cost: $';l3.innerHTML='Revenue (Price): $';r2.style.display='none';}else if(mode==='revenue'){l1.innerHTML='Cost: $';l2.innerHTML='Markup: %';r3.style.display='none';}else if(mode==='cost'){l3.innerHTML='Revenue (Price): $';l2.innerHTML='Markup: %';r1.style.display='none';}}function calculateMarkup(){var mode=document.getElementById('given_data').value;var cost=parseFloat(document.getElementById('input1').value);var markupPerc=parseFloat(document.getElementById('input2').value);var revenue=parseFloat(document.getElementById('input3').value);var profit,margin,ans=";var showMargin=document.getElementById('show_margin').checked;if(mode==='markup'){if(isNaN(cost)||isNaN(revenue)){alert('Please enter Cost and Revenue');return;}profit=revenue-cost;markupPerc=(profit/cost)*100;}else if(mode==='revenue'){if(isNaN(cost)||isNaN(markupPerc)){alert('Please enter Cost and Markup %');return;}profit=cost*(markupPerc/100);revenue=cost+profit;}else if(mode==='cost'){if(isNaN(revenue)||isNaN(markupPerc)){alert('Please enter Revenue and Markup %');return;}cost=revenue/(1+(markupPerc/100));profit=revenue-cost;}margin=(profit/revenue)*100;ans+='
Cost: $'+cost.toFixed(2)+'
';ans+='
Revenue (Price): $'+revenue.toFixed(2)+'
';ans+='
Profit: $'+profit.toFixed(2)+'
';ans+='
Markup: '+markupPerc.toFixed(2)+'%
';if(showMargin){ans+='
Gross Margin: '+margin.toFixed(2)+'%
';}document.getElementById('answer').innerHTML=ans;document.getElementById('calculatorAnswer').style.display='block';}updateFields();

Using the Markup Calculator

The markup calculator is a critical tool for business owners, retailers, and wholesalers to determine the selling price of their products based on the cost and desired profit. By entering any two known variables—Cost, Revenue, or Markup Percentage—you can instantly find the third. This ensures that your pricing strategy covers your expenses while generating the necessary profit for business sustainability.

Cost
The total amount you paid to acquire or manufacture the product (COGS).
Markup Percentage
The percentage added to the cost to reach the final selling price.
Revenue (Selling Price)
The final price charged to the customer.

How It Works

Markup is the difference between the selling price and the cost of a product, expressed as a percentage of the cost. It represents the "add-on" price needed to cover overheads and profit. The fundamental formulas used by our markup calculator are:

Profit = Revenue – Cost
Markup % = (Profit / Cost) × 100
Selling Price = Cost × (1 + Markup %)
  • Markup vs Margin: Note that markup is calculated based on cost, while gross margin is calculated based on the selling price. A 50% markup results in a 33.3% gross margin.
  • Profit: The actual dollar amount gained per unit sold.
  • Pricing Strategy: Use the markup calculator to test different price points and see how they impact your bottom line.

Markup Calculation Example

Example Scenario: A boutique owner buys a handmade vase for $40.00 and wants to apply a 65% markup to ensure they cover rent and staff costs.

Step-by-step solution:

  1. Identify Cost: $40.00
  2. Identify Markup %: 65% (0.65)
  3. Calculate Profit Amount: $40.00 × 0.65 = $26.00
  4. Calculate Selling Price (Revenue): $40.00 + $26.00 = $66.00
  5. Result: The vase should be priced at $66.00.

Common Questions

What is a good markup percentage?

Markup varies significantly by industry. Retail clothing often sees markups of 100% (known as "keystone pricing"), while grocery stores may operate on much lower markups of 15% to 25% due to high volume. Service industries may have markups exceeding 200%.

Why is markup different from gross margin?

Markup is the ratio of profit to cost, whereas margin is the ratio of profit to the selling price. For example, if you buy something for $100 and sell it for $150, your markup is 50% ($50/$100), but your margin is only 33.3% ($50/$150). It is vital to use a markup calculator to avoid confusing these two metrics, as mistaking margin for markup can lead to underpricing.

Can markup be higher than 100%?

Yes. Markup can be any percentage. If a product costs $1.00 and you sell it for $5.00, your markup is 400%. However, gross margin can never exceed 100% (unless you have negative costs).

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