Material Markup Calculator Formula

Understand the math behind the material markup calculator. Each variable explained with a worked example.

Use the Material Markup Calculator

Formulas Used

Price to Charge

selling_price = material_cost * (1 + markup_pct / 100)

Markup Amount

markup_amount = material_cost * markup_pct / 100

Resulting Margin

margin_pct = (1 + markup_pct / 100) > 0 ? (markup_pct / 100) / (1 + markup_pct / 100) * 100 : 0

Variables

VariableDescriptionDefault
material_costMaterial Cost(USD)2500
markup_pctMarkup Percentage(%)20

How It Works

How to Calculate Material Markup

Formula

Price to Charge = Material Cost x (1 + Markup%/100)

Material markup compensates you for sourcing, handling, storing, and delivering materials. It also covers the risk of price fluctuations and waste.

Worked Example

$2,500 worth of materials with a 20% markup.

material_cost = 2500markup_pct = 20
  1. 01Price to charge = $2,500 x (1 + 20/100) = $2,500 x 1.20 = $3,000
  2. 02Markup amount = $2,500 x 0.20 = $500
  3. 03Resulting margin = $500 / $3,000 x 100 = 16.67%

Ready to run the numbers?

Open Material Markup Calculator