1. What is Markup?

Markup is the difference between the cost of a good or service and its selling price. It's typically expressed as a percentage of the cost and represents the profit margin added to the cost price.

2. How Does the Calculator Work?

The calculator uses the markup formula:

Where:

• \( Cost \) — The original cost of the item
• \( Markup\ \% \) — The desired profit percentage

Explanation: The formula calculates the selling price by adding a percentage of the cost to the original cost.

3. Importance of Markup Calculation

Details: Proper markup calculation is essential for businesses to ensure profitability, cover expenses, and remain competitive in the market.

4. Using the Calculator

Tips: Enter the cost of the item and the desired markup percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between markup and margin?
A: Markup is based on cost, while margin is based on selling price. A 50% markup equals a 33% margin.

Q2: What is a typical markup percentage?
A: Markup varies by industry. Retail might use 50-100%, while services might use 20-50%.

Q3: How do I calculate markup from selling price?
A: Markup % = ((Selling Price - Cost) / Cost) × 100

Q4: Should I use the same markup for all products?
A: No, consider product demand, competition, and perceived value when setting markups.

Q5: How often should I review my markup percentages?
A: Regularly, especially when costs change, market conditions shift, or you introduce new products.