This markup calculator shows you how to compute the markup amount and percentage given the selling price and cost of purchase.
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The markup percentage is a concept commonly used in managerial/cost accounting work and is equal to the difference between the selling price and cost of a good, divided by the cost of that good. Markup percentages are especially useful in calculating how much to charge for the goods/services that a company provides its consumers. A markup percentage is a number used to determine the selling price of a product in relation to the cost of actually producing the product. The number expresses a percentage above and beyond the cost to calculate the selling price. Markups are common in cost accounting, which focuses on reporting all relevant information to management to make internal decisions that better align with the company’s overall strategic goals.
The markup formula is as follows:
Markup % = (selling price – cost) / cost x 100
where the markup formula is dependent on,
Selling Price = the final sale price
Cost = the cost of the good
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