Calculate the markup percentage on the product cost, the final revenue or selling price and, the value of the gross profit. Enter the original cost and your required gross margin to calculate revenue (selling price), markup percentage and gross profit. This calculator is the same as our Price Calculator.
Revenue = Selling Price
Markup Formulas and Calculations:
- The gross profit P is the difference between the cost to make a product C and the selling price or revenue R.
- P = R - C
- To calculate revenue R based on the cost C and the desired gross margin G, where G is in decimal form:
- R = C / ( 1 - G)
- The gross profit dollars P is the revenue dollars R from the sale times the gross margin G percentage, where G is in decimal form :
- P = R * G
- The markup percentage M, in decimal form, is gross profit P divided by cost C.
- M = P/ C
- M * 100 will change the decimal to a percentage.