1. What is a Markup Percentage Calculator?

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

Purpose: It helps businesses and individuals determine their profit margin as a percentage of the cost price.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{Markup \%} \) — Percentage markup
• \( S \) — Selling price (USD)
• \( C \) — Cost price (USD)

Explanation: The difference between selling price and cost price is divided by the cost price, then multiplied by 100 to get the percentage.

3. Importance of Markup Percentage

Details: Understanding markup helps businesses set appropriate prices, maintain profitability, and make informed pricing decisions.

4. Using the Calculator

Tips: Enter the selling price and cost price in USD. Both values must be greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: What's a good markup percentage?
A: This varies by industry. Retail typically ranges from 50-100%, while services may be higher. Research industry standards.

Q2: How is markup different from margin?
A: Markup is based on cost price, while margin is based on selling price. They represent profit differently.

Q3: Should I include all costs in the cost price?
A: Yes, include product cost, labor, overhead, and any other expenses to calculate accurate markup.

Q4: Can markup be over 100%?
A: Yes, many luxury goods and specialized services have markups well over 100%.

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