Calculate markup percentage from cost and selling price. Useful for pricing decisions and category planning.
Markup
50.00%
Profit per Unit
$50.00
Selling Price
$150.00
Cost
$100.00
Formula Used
((Selling Price − Cost) ÷ Cost) × 100
((Selling Price − Cost) ÷ Cost) × 100
Markup is the amount added to the cost of a product to determine its selling price, expressed as a percentage of cost.
A store buys a backpack for $40 and sells it for $60. Markup = ((60 − 40) ÷ 40) × 100 = 50%. So the markup over cost is 50%.
Markup is a percentage of cost. Margin is a percentage of selling price. A 50% markup equals roughly a 33% margin.
Not necessarily. Higher markup may reduce sales velocity. Balance markup against turnover.
Margin = Markup ÷ (1 + Markup). For example, a 50% markup = 0.5 / 1.5 = 33.33% margin.
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