.msp-calculator-container {
max-width: 600px;
margin: 20px auto;
padding: 25px;
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.msp-calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
font-size: 24px;
}
.msp-input-group {
margin-bottom: 15px;
}
.msp-input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #555;
}
.msp-input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.msp-input-group input:focus {
border-color: #007bff;
outline: none;
}
.msp-btn {
width: 100%;
padding: 14px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
}
.msp-btn:hover {
background-color: #0056b3;
}
.msp-result {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border: 1px solid #ddd;
border-radius: 4px;
display: none;
}
.msp-result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.msp-result-item:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.msp-label {
color: #666;
}
.msp-value {
font-weight: bold;
color: #333;
}
.msp-highlight {
color: #28a745;
font-size: 1.1em;
}
.msp-article {
max-width: 800px;
margin: 40px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: #333;
}
.msp-article h2 {
color: #2c3e50;
margin-top: 30px;
}
.msp-article p {
margin-bottom: 15px;
}
.msp-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.msp-article li {
margin-bottom: 10px;
}
.msp-formula-box {
background-color: #eef2f5;
padding: 15px;
border-left: 4px solid #007bff;
margin: 20px 0;
font-family: monospace;
font-size: 1.1em;
}
@media (max-width: 600px) {
.msp-calculator-container {
padding: 15px;
}
}
function calculateMarkupOnSellingPrice() {
var costInput = document.getElementById('mspCostPrice');
var sellInput = document.getElementById('mspSellingPrice');
var resultDiv = document.getElementById('mspResult');
var cost = parseFloat(costInput.value);
var sell = parseFloat(sellInput.value);
// Validation
if (isNaN(cost) || isNaN(sell)) {
alert("Please enter valid numbers for both Cost and Selling Price.");
resultDiv.style.display = "none";
return;
}
if (sell 0) {
rateOnCost = (profit / cost) * 100;
} else {
rateOnCost = (profit > 0) ? Infinity : 0;
}
// Display Results
document.getElementById('resProfit').textContent = "$" + profit.toFixed(2);
document.getElementById('resRateSelling').textContent = rateOnSellingPrice.toFixed(2) + "%";
if (rateOnCost === Infinity) {
document.getElementById('resRateCost').textContent = "Undefined (Cost is 0)";
} else {
document.getElementById('resRateCost').textContent = rateOnCost.toFixed(2) + "%";
}
resultDiv.style.display = "block";
}
How to Calculate Rate of Markup on Selling Price
Understanding the difference between markup on cost and markup on selling price is crucial for maintaining profitability in retail and wholesale businesses. While both metrics measure profit, they calculate it against different baselines.
Markup on Selling Price, frequently referred to in accounting as the Gross Profit Margin, expresses your profit as a percentage of the total revenue generated from a sale. This is distinct from standard markup, which is based on the cost of the item.
The Formula
To calculate the rate of markup on the selling price, you first need to determine your gross profit (Selling Price minus Cost). Then, divide that profit by the selling price.
Rate of Markup on Selling Price = ((Selling Price – Cost) / Selling Price) × 100
Step-by-Step Calculation Example
Let's say you run an electronics store. You purchase a pair of headphones for $60 (Cost) and you sell them to a customer for $100 (Selling Price).
- Calculate Gross Profit:
$100 (Sell) – $60 (Cost) = $40 Profit.
- Divide Profit by Selling Price:
$40 / $100 = 0.40.
- Convert to Percentage:
0.40 × 100 = 40%.
In this example, your rate of markup on the selling price is 40%. Note that if you calculated standard markup on cost, it would be higher ($40/$60 = 66.67%).
Why Use Markup on Selling Price?
Many businesses prefer calculating the rate based on selling price because:
- Consistency with Financial Reports: Income statements usually report Gross Margin as a percentage of Sales Revenue, not Cost of Goods Sold.
- Discount Planning: Since discounts are taken off the selling price, knowing your margin on the selling price helps you quickly understand how much you can discount an item before you start losing money.
- Sales Commission: Commissions are often paid on the sales value, making this metric easier to correlate with sales expenses.
Markup on Cost vs. Markup on Selling Price
It is vital not to confuse the two. If you want a 50% return on the selling price, you cannot simply mark up your cost by 50%.
If an item costs $100 and you mark it up 50% on cost, you sell it for $150. Your profit is $50. However, $50 divided by the $150 selling price is only 33.3% markup on selling price. To achieve a 50% markup on selling price, you would need to sell the item for $200.