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 retailers set appropriate selling prices to ensure profitability while remaining competitive.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

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

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

3. Importance of Markup Calculation

Details: Proper markup calculation ensures businesses cover costs, achieve desired profit margins, and maintain financial sustainability.

4. Using the Calculator

Tips: Enter the cost price in GBP and the desired markup percentage. Both values 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. A 50% markup equals a 33.3% profit margin.

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

Q3: How do I convert markup percentage to decimal?
A: Divide the percentage by 100 (e.g., 25% becomes 0.25).

Q4: Does this include VAT or other taxes?
A: No, this calculates the pre-tax selling price. Add VAT separately if applicable.

Q5: Can I use this for multiple products?
A: Yes, but you'll need to calculate each product individually or use a spreadsheet for bulk calculations.