Direct Answer: To calculate retail selling price from markup, multiply your unit cost by (1 + markup percentage). Markup ensures your sale price covers operating overhead while hitting target profitability.
Determine the right retail price for your products based on your desired markup.
Selling Price = Cost + (Cost * (Markup / 100))| Variable | Description & Context | Measurement Unit | Sample Input |
|---|---|---|---|
Cost Price |
Cost Price ($) | $ | 40.00 |
Markup Percentage |
Markup Percentage (%) | % | 25 |
Understanding these foundational concepts ensures you interpret your results with precision:
Markup is different from margin. Markup is added to the cost, while margin is calculated from the final revenue.
If a product costs $80 and you want a 50% markup, the selling price is $120.
| Computation Step | Formula / Input Parameter | Calculated Output |
|---|---|---|
| 1. Applied Formula | Selling Price = Cost + (Cost * (Markup / 100)) |
Mathematical Standard |
| 2. Applied Scenario | If a product costs $80 and you want a 50% markup, the selling price is $120. | Standard Calculation Run |
| 3. Final Result | Verified Calculation Output | Computed Output |
Don’t lose money by confusing these two numbers. Learn the essential formula for every small business owner.
Read the Full Guide: Margin vs. Markup: The 1-Minute Guide to Pricing Your Products →