Calculate Selling Price Using Markup Percentage
This calculator helps businesses determine appropriate selling prices by applying a markup percentage to product costs. It ensures proper profit margins while maintaining competitive pricing.
Calculator
Formula
Selling Price = Cost Price + (Cost Price × Markup Percentage / 100)
How to Use
Enter product cost and desired markup percentage. Click calculate to get selling price. Use clear to reset fields. Maintain profitability by testing different markup percentages.
Calculation Process
- Determine product's cost price
- Decide markup percentage (based on desired profit margin)
- Calculate markup amount: Cost Price × (Markup Percentage/100)
- Add markup amount to original cost price
- Result is the final selling price
What is markup percentage?
Markup percentage is the amount added to product cost to determine selling price. It represents profit margin as a percentage of cost.
How is markup different from margin?
Markup is based on cost price, while margin is based on selling price. Markup calculates profit added to cost, margin calculates profit percentage of sale price.
What's a good markup percentage?
Typical markups range 20-50% depending on industry. Retail often uses 50% markup (33% margin). Consider competition and market demand.
Can markup be over 100%?
Yes. High-value or luxury items often have 100%+ markups. Ensure pricing remains competitive while covering costs and generating profit.
How to calculate markup from selling price?
Markup Percentage = [(Selling Price - Cost Price)/Cost Price] × 100. Subtract cost from price, divide by cost, multiply by 100.
Does markup include overhead costs?
Yes. Markup should cover all expenses: production, overhead, and desired profit. Calculate total cost before applying markup.
How often should I review markup percentages?
Review quarterly or when costs change. Monitor market conditions, competitor pricing, and customer demand regularly.
What's the difference between fixed and variable markup?
Fixed markup applies same percentage to all products. Variable markup adjusts based on product type, demand, or competition.
How does volume affect markup percentage?
High-volume products often use lower markups. Low-volume/specialty items may have higher markups to maintain profitability.
Can I use markup for service pricing?
Yes. Calculate hourly costs (wages + overhead), apply markup to determine service rates. Common in consulting and professional services.