# Markup Calculator

**Enter all**** values to calculate:**

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## Markup Formula:

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%