๐ฐ Financial
Markup Calculator
Calculate your required selling price and total profit by applying a specific markup percentage to your wholesale cost.
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Formula
Selling Price = Cost ร (1 + (Markup % / 100))
Profit = Selling Price - CostCost- The cost to acquire or produce the item
Markup %- The percentage of the cost added to determine the selling price
Selling Price- The final retail price
Example
Applying a Retail Markup
You acquire inventory for $25 per unit and want to apply a standard 60% retail markup.
- Convert markup to a decimal: 60% = 0.60.
- Calculate the markup amount: $25 ร 0.60 = $15.
- Calculate selling price: $25 + $15 = $40.
- Result: Your profit per unit is $15.
Frequently Asked Questions
To achieve a 50% margin, you need a 100% markup on your cost. For example, buy for $10, markup by 100% (add $10) to sell for $20. Your $10 profit is 50% of your $20 revenue.