1. What is a Markup Calculator?

Definition: This calculator determines the selling price of a product based on its cost price and desired markup percentage.

Purpose: It helps businesses and individuals set appropriate selling prices to ensure profitability.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( S \) — Selling price (USD)
• \( C \) — Cost price (USD)
• \( M \) — Markup percentage (converted to decimal)

Explanation: The cost price is multiplied by 1 plus the markup percentage (expressed as a decimal) to determine the selling price.

3. Importance of Markup Calculation

Details: Proper markup ensures businesses cover costs and achieve desired profit margins while remaining competitive.

4. Using the Calculator

Tips: Enter the cost price in USD and the desired markup percentage. The markup must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between markup and margin?
A: Markup is based on cost price, while margin is based on selling price. They represent profit differently.

Q2: What's a typical markup percentage?
A: This varies by industry. Retail often uses 50-100% markup, while services might use 20-50%.

Q3: How do I convert markup to margin?
A: Margin = Markup / (1 + Markup). For example, 50% markup = 33.3% margin.

Q4: Should I include all costs in the cost price?
A: Yes, include product cost, labor, overhead, and any other expenses to ensure proper pricing.

Q5: Can markup be over 100%?
A: Yes, especially for luxury goods or products with high development costs.