This calculator can compute markup percentage, selling price or revenue, and gross profit from the cost and gross margin.
The following formula is used:
Markup (%) = (Gross Margin ÷ (100 - Gross Margin)) × 100
Find the markup percent for a cost of $150 and a gross margin of 28%.
Apply the values in the formula:
= (28 ÷ (100 - 28)) × 100
= (28 ÷ 72) × 100
= 0.3888 × 100
Markup = 38.89%
Profit = 150 × 38.89% = $58.33
A product costs $499, and the gross margin is 41%.
= (41 ÷ (100 - 41)) × 100
= (41 ÷ 59) × 100
= 0.6949 × 100
Markup = 69.49%
Profit = 499 × 69.49% = $346.76