📈 Markup Percentage Calculator
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📌 Understanding Markup Percentage Calculation
The markup percentage is calculated using the formula:
Markup % = ((Selling Price – Cost Price) / Cost Price) × 100%
📌 Example Calculations
Cost Price | Selling Price | Markup Percentage |
---|---|---|
$100 | $120 | 20% |
$250 | $300 | 20% |
$500 | $650 | 30% |
❓ FAQs
Q1: How do I calculate the markup percentage?
✅ Subtract the cost price from the selling price, divide by the cost price, and multiply by 100.
Q2: Can markup percentage be negative?
✅ Yes, if the selling price is lower than the cost price, it means a loss instead of a markup.
Q3: What is the difference between markup percentage and profit margin?
✅ Markup percentage is based on cost price, whereas profit margin is based on selling price.
Q4: How can I use this calculator in business?
✅ It helps in setting product prices, determining profitability, and analyzing cost strategies.
Q5: What happens if cost price is zero?
✅ A zero cost price is not valid for markup calculations, as division by zero is undefined.