Step-By-Step Guide to Calculating Markup Percentage

Why Bookkeeping

There are many opportunities for business owners & individuals to make a profit by using the markup.

If the markup for the product is large, then it will make a great profit.

You can easily understand the markup calculation by using the markup formula. You can conveniently calculate the markup on different products & services by using the standard formula for markup.

To make the calculation easier, you can use a percentage markup calculator online that calculates the markup & revenue for the product or services depending on the cost and profit of the product.

What is Markup:

Markup is said to be the difference between the cost & actual price of the product. It is very helpful for the manufacturers to manage the supply cost, which is required for the manufacturing of the product and for profit as well. Usually, markup is referred to as a percentage in the marketplace.

The calculation for the markup percentage becomes complex because of tricky figures. So, simply use the markup calculator by that uses the standard markup formula to determine the most accurate outcome for the queries.

For instance: at the lock shopping store when the stocks are limited, then it is marked up by the percentage of 25. When it comes to the calculations for the stocks of the outlet, it becomes daunting to calculate the markup for many items together. For ease, try the markup cost calculator that shows the cost, markup, revenue, profit, and margin of the product or services.

Markup Percentage Formula:

The standard formula to calculate the markup of the product is expressed as:

Let’s suppose that the cost of the product is $30 and the selling price of that product is $35. Then the markup percentage would be (35 – 30) / 30 = 0.16 X 100 = 165%.

Instead of using the formula to calculate the markup of the product, company or local store, you can consider the markup calculator to determine the profit, revenue, markup, cost, and margin of the product.

Procedure to Calculate the Markup of a Product:

Let’s consider an example for the step-by-step calculation of the markup of the product or services. Suppose that the owner of the company is specialized in the production of printers & computers. The owner of the company has a large order of thirty-five computers along with ten printers. The customer also demands to install the software on all the computers as well.

Step # 1: When it comes to the stepwise calculation, then you need to calculate the total price of the order for the markup.

(Cost of all computers + cost of printers + cost of software)

After adding all the costs, the actual cost of the order will be $23,500.

Step # 2: Now, find the selling price of the product with the profit percentage of your choice.

20% = (selling price of the product – total cost of the order) / total cost of the order. Therefore, it would be 28, 200.

Might be possible that by following this step-wise procedure you get confused, so try a markup calculator online that calculates the ideal markup figure for the services and products.

Markup in Different Industries:

The market percentage varies on the industry parameters. Usually, the percentage used is approximately 5 to 10 percent for the total cost of the manufactured goods.

There are also some companies that have a bigger markup for the product or services they’re offering. Don’t worry about the markup calculation, make use of a percentage markup calculator that finds the percentage of the product according to the markup formula.


No doubt, doing the calculations for the product or service markup is a complex & daunting task, but we have mentioned the stepwise procedure for you.

By following the procedure, you can conveniently calculate the markup for the company’s services or products. You can use the markup calculator that makes the calculations easy for the markup, profit, revenue, and margin of the product.