What is Markup Calculator?
Determines the percentage added to the cost price to arrive at the selling price.
How it Works
1. Determine 'Unit Cost'.
2. Apply target 'Markup %'.
3. Establish 'Final Price'.
Step-by-Step Guide
1. Assess Cost
Total variable cost per unit.
2. Define Markup
Desired percentage add-on.
3. Set Price
Calculated selling point.
Example
Input: $50 Cost, 50% Markup
Result: $75 Price
FAQ
Keystone pricing?
Doubling the wholesale cost (100% Markup).
Markup vs Margin?
Markup is Cost-based; Margin is Price-based. 100% Markup = 50% Margin.
Minimum markup?
Retail typically needs 50%+ to cover overhead.
Luxury goods?
Often exceed 300-500% markup.
Calculation?
Cost * (1 + Markup/100).
Conclusion
Markup ensures your overheads are covered. Beware: A 50% markup does not mean you keep 50% of the sale price (that would be Margin).