Markup Calculator

On this page, we’ll talk about the relationship between selling price, cost, and markup indicated with an example. Markup is the difference between an item’s purchase price and ultimately its sale price. In other words, markup = selling price – cost. Mark up in other words is the difference in price between the cost price of something and the selling price. So, if you buy a watch for $10 and sell it for $15 your markup is $5. Markup is simply the sales price minus the cost of the item, such that sales price = cost + markup. For the watch that you spent $10 on buying, You can add on $5, and sell it for $15. Cost also means the selling price minus the markup. Consequently, selling price = cost + the markup. Markup = selling price minus cost; Cost = selling price minus markup.

However, now some businesses calculate their markup as a percentage of the cost and others as a percentage of the selling price. We define the markup rate relative to cost, which we refer to as RC in this study, where the markup is divided by cost. The rate of markup is based on the selling price. RS markup divides the selling price by markup, and we denote it as RS. We often multiply by 100% to convert them from decimals to percentages. For example, we write M = 0.6 C, so if the Markup is 60% of the cost. If the markup is 45% of the selling price we write M = 0.45 S. Now, let’s solve some problems: An example is shown below.