How to use it
- Enter the acquisition or production cost.
- Enter the intended or actual selling price.
- Calculate the markup amount, markup rate and gross margin rate.
Markup Calculator
Compare a product cost with its selling price to calculate markup and gross margin.
About the Markup Calculator
The markup calculator measures the difference between cost and selling price from both the cost and revenue perspectives.
Formula
Markup amount equals selling price minus cost. Markup percentage divides that amount by cost, while gross margin percentage divides it by selling price.
Example
A cost of 40 and selling price of 60 produce markup of 20, a 50% markup rate and a 33.33% gross margin.
Notes
Markup and margin use different denominators, so their percentages are not interchangeable. Gross margin is unavailable when selling price is zero.