Adam H.

asked • 04/28/16

Is there a way to calculate the markup percentage based off of only the margin percentage?

Is there a way to calculate the markup percentage based off of only the margin percentage?

1 Expert Answer

By:

Adam H.

But since margin and mark up are directly related, should there be a way to calculate the mark up based off margin?
 
There are charts online that show sample margins and mark ups associated with them. Maybe the formula is to complicated since the scale in non-linear.
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04/28/16

Joseph C.

tutor
Perhaps this additional information will be helpful.
How to Calculate Markup Percentage

By definition, the markup percentage calculation is cost X markup percentage, and then add that to the original unit cost to arrive at the sales price. The markup equation or markup formula is given below in several different formats. For example, if a product costs $100, the selling price with a 25% markup would be $125.

Gross Profit Margin = Sales Price – Unit Cost

Markup Percentage = Gross Profit Margin/Unit Cost

Sales Price = Cost X Markup Percentage + Cost

One of the pitfalls in using the markup percentage to calculate your prices is that it is difficult to ensure that you have taken into consideration all of your costs.
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04/29/16

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