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Markup Percentage
50.00%
Markup Percentage vs Cost Price
公式
How to Calculate Markup
Markup is the percentage added to the cost price to determine the selling price.
Formula
Markup % = [(Selling Price - Cost) / Cost] x 100
Markup vs. Margin
计算示例
You buy a product for $50 and sell it for $75.
- 01Profit = $75 - $50 = $25
- 02Markup = ($25 / $50) x 100 = 50%
- 03Margin = ($25 / $75) x 100 = 33.33%
常见问题
What is the difference between markup and margin?
Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. A 50% markup equals a 33.33% margin. Markup is always a larger percentage than margin for the same transaction.
How do I calculate selling price from markup?
Selling Price = Cost x (1 + Markup%/100). For example, $50 cost with 50% markup: $50 x 1.50 = $75.
What markup percentage should I use?
Typical markup varies by industry. Retail clothing: 100-300%. Electronics: 10-30%. Restaurants (food cost): 200-400%. Manufacturing: 30-50%. Construction materials: 20-40%. The right markup ensures you cover costs and overhead while remaining competitive.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) converts to a 0.50 / 1.50 = 33.3% margin. Conversely, Markup = Margin / (1 - Margin): a 33.3% margin converts to 0.333 / 0.667 = 50% markup.
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