Percentage calculator
Markup Percentage Calculator
The Markup Percentage Calculator measures how much is added to a product cost to determine its selling price. It expresses the markup as a percentage of the original cost.
Markup percentage
50%
Markup is calculated using cost price as the base.
Formula
((Selling Price − Cost Price) / Cost Price) × 100Step-by-step calculation
- 1
Subtract cost price from selling price.
- 2
Divide the markup amount by cost price.
- 3
Multiply by 100 to calculate markup percentage.
Formula
Markup Percentage = ((Selling Price - Cost) / Cost) × 100.
How to calculate it
- Subtract the cost from the selling price to calculate the markup amount.
- Divide the markup amount by the original cost and multiply by 100.
- Markup percentage uses cost as its denominator. It is not the same as profit margin, which uses selling price.
Calculating markup percentage
Values: Cost = $40; Selling price = $60
Result: Markup = $20; Markup percentage = 50%
Frequently asked questions
What is markup percentage?
Markup percentage is the amount added to a product cost, expressed as a percentage of that cost.
Is markup the same as profit margin?
No. Markup is calculated using cost as the denominator, while profit margin is calculated using selling price.
Can markup percentage be negative?
Yes. If the selling price is below cost, the result is negative, indicating a loss rather than a markup.