Calculate the markup percentage based on product cost, ultimate revenue or selling price, and gross profit. Enter the initial cost and your desired gross margin to compute revenue (selling price), markup percentage, and gross profit. This calculator is the same as the Price Calculator.
Markup Formulas and Calculations:
The gross profit P is the difference between the cost of manufacturing a product C and its selling price or revenue R.
P = R - C
To compute revenue R using the cost C and the desired gross margin G, where G is in decimal form:
R = C / ( 1 - G)
The gross profit dollars P are the revenue dollars R from the sale multiplied by the gross margin G percentage, where G is in decimal form.
P = R * G
In decimal form, markup % M equals gross profit P divided by cost C.
M = P/ C
M * 100 converts the decimal to a percentage.