Markup Calculator

There are 3 things calculated
  *   Markup (M)
  *   Selling Price  (S)
  *   Gross Profit (P)

Markup
Markup (M) = (Profit / Cost) x 100

Selling Price
Selling Price (S) = Cost / [ (1 – Margin (%) ]

Gross Profit
Gross Profit  (P) = Selling price (S) – Cost of the product.

Example.

If the cost of the product is $ 125 and you need a profit margin of 20% on it. What is the Markup (M), Selling Price (S) and Gross Profit (P)

First we will calculate the selling price.

Selling Price (S) = Cost / [ (1 – Margin (%) ]

Selling Price (S) = 125/ [ (1 – 0.20]

Selling Price (S) = 125 / 0.80 = $156.25

The selling price of the product have to be $156.25 for 20% margin.

Gross Profit  (P) = Selling price (S) – Cost of the product.

Gross Profit  (P) = 156.25 – 125 = $ 31.25

Gross Profit earned would be $ 31.25.

Markup (M) = (Profit / Cost) x 100

Markup (M) = (31.25/ 125) x 100

Markup (M) = 0.25 x 100 = 25%

Markup Value = 25%