Free online markup calculator
Check what could be your best-selling price with Moon Invoice’s markup percentage calculator. Identify the right price in a fraction of a second and maximize your profits to cultivate business growth. Start using our free mark up calculator instead of relying on manual calculations.
What is markup?
Markup is basically a percentage, which is added to the product cost in order to find the right selling price. Basically, it is a ratio between the product cost and its actual selling price. By adding markup in transactions, the business owner or reseller tries to cover the product cost and aims to maximize their profits.
In simpler words, they will add some amount to the product’s cost to secure their profits. Notably, a markup is added in such a way that it should not be too high to disappoint customers or too low to miss profitability. With this, the retailer looks to create a balance between competitiveness and business profitability.Â
Markup formula
Here is a simple markup percentage formula to identify what amount you should add to the product cost.
Markup (%) =| Selling Price - Cost |
| Cost |
How to calculate markup?
Calculating markup isn’t as complicated as chasing late payments. If you have no idea how to find markup percentage, follow the steps below.
- Discover the cost to manufacture the product before putting it on the shelves, i.e., know the cost of your product.
- Next, finalize the selling price, a cost that you want to collect from your buyers.
- If you have already figured out the above two costs, then take off the cost price from the selling price to know the markup amount. (selling price - cost price = markup)
- Or else, if you don’t want to calculate it manually, use Moon Invoice’s percent markup calculator.
How to Find markup percentage
Markup percentage plays a decisive role in setting the right price and earning the desired profit.
In case you wish to find markup in percentage manually, here is the formula
(Markup / Cost) x 100 = Markup percentage
For example, the markup amount is $45, and the cost of the product is $90. Now divide the markup by the product cost, and later, multiply the resulting amount by 100
The markup percentage will be ($45 / $90) x 100 = 50%
Markup examples
To get better clarity on what markup is, here’s the perfect example for you.
Imagine you sell handmade bags, which you had earlier bought for $104 each. Now, you applied a 30% markup on its cost to earn profits so that you can cover expenses like shop rent or utilities. Now, the addition of markup means that you will sell a bag at $135.20 instead of $104
As a result, you make a desired profit while maintaining a fine grip on market competition. Similarly, you can apply the markup to different product costs and aim for greater financial stability. So, now you know why to include markup when setting the final selling price of your product.
Benefits of mark up calculator
Here’s why using a price markup calculator is far better than being a math genius.
No matter how many times you calculate markup, every time you will get the right price. You neither get small errors nor you spend extra time. All you can do is smartly price your products.
Moon Invoice’s markup calc is a no-brainer for any business owner who wants to price products without compromising on profits. You no longer need to use your hand for calculating markup.
Businesses can calculate the markup value without stepping out of their home comfort. You can find the right markup just at your fingertips by using a calculator on a smartphone or tablet.
Moon Invoice’s online markup calculator also helps to forecast revenue, which can be used to make effective strategies and ultimately enhance financial planning for the next year.
More free tools to fuel your business productivity
From a markup calculator to an online receipt maker, Moon Invoice comprises a wide range of free calculators and handy tools to supercharge your business productivity.
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Frequently Asked Questions
How to calculate selling price using markup percentage?
If you want to figure out what’s the selling price, just multiply the amount by the markup %. For example, if the cost price is $50 and a markup is 30%, the selling price would be $50 × 1.30 = $65.
What is the formula for 30% markup?
Here, the formula is simple: Selling Price = Cost Price × 1.30. It means you are increasing the cost price by 30% in order to claim a bigger profit.
What is a 25% markup on $100?
It’s $25. When you multiply $100 by 0.25, what you get is $25, which you will add to the product cost. Therefore, the final selling price would be $125.
What is a good markup percentage?
E30% to 50% is an ideal markup percentage, but it may vary depending on the type of industry. If we talk about the fashion industry, you may see higher markups, ranging from 50% to 80%. While in the food industry, you may see lower markups around 10 to 15%.
Which is the best free markup calculator?
Moon Invoice’s online mark up calculator is best for business use. You neither need to waste time doing manual calculations nor deal with human errors. And the best part is, it comes at no cost. So, you can quickly find the right markup whenever you want.
