Markup Calculator

This markup calculator will allow you to quickly identify the markup percentage on the value of the gross profit, the selling price or final revenue, and a product and/or service cost.  This calculator allows you to also determine the markup value based on changes in the quantity sold.

How to Use The Markup Calculator

1. Start of by entering the cost of the goods or services.  This amount will include the total product cost.  This is also sometimes call cost of goods sold.

2. The markup percentage calculator can help you determine the sales price and how much revenue you will need to meet the profit margins you desire.

Things To Keep In Mind With Markup Calculator

The markup formula will make sure you’re sell your product or services for the desired profit.  It’s important for products or services with high fixed costs to sell higher quantities to displaces the cost per unit.  This means the more you sell the better your gross margins will be.  Once you’ve determined your fixed costs, you’ll want to consider your variable costs.  Variable costs are costs that increase with each product or services sold.  This is usually a percentage and includes things such as: cost of raw materials, direct labors costs, utility costs, and sales commissions.

Breakeven Point For Your Goods & Services

With any product or services it’s important to understand the breakeven point.  This in determining if more capital will be required in order to keep your business afloat.