# Markup Calculator

Markup Calculator is used to calculate the Markup Value of an item or service which is a ratio between it's cost and selling price.

Markup Percentage:
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Background Information

What does Markup Percentage mean?
Markup percentage is the proportion of total cost represented by profit. It is a concept used in managerial or cost accounting work. It is equal to the difference between the selling price and cost of a product, divided by its cost.
Formula

Markup % = (selling price – cost) / cost x 100

Where the markup formula is dependent on:-

• Selling Price = the final sale price
• Cost = the cost of the good
Example

The cost of a product is $100, and then the selling price with a 25% markup would be$125. Then by applying the above formula:-

• Markup % = ($125 –$100) / \$100x 100
• =0.25 or 25%