Markup Calculator
Use this calculator to determine the selling price, profit, and profit margin based on your product's cost and desired markup percentage. Understanding markup is crucial for setting competitive prices and ensuring profitability.
Understanding Markup
Markup is the difference between the cost of a good or service and its selling price. It's usually expressed as a percentage of the cost. Businesses use markup to cover their operating expenses and generate profit. For example, if an item costs you $10 to acquire and you sell it for $15, your markup is $5, or 50% of the cost.
Markup vs. Profit Margin
While often confused, markup and profit margin are distinct concepts:
- Markup: Calculated as a percentage of the cost. It tells you how much you're adding to the cost to arrive at the selling price.
- Profit Margin: Calculated as a percentage of the selling price. It tells you what percentage of your revenue is actual profit after all costs are covered.
Both metrics are vital for financial analysis, but they provide different perspectives on a business's profitability.
How the Calculator Works
The calculator uses the following formulas:
- Selling Price:
Cost of Goods × (1 + (Desired Markup Percentage / 100))
- Profit Amount:
Selling Price - Cost of Goods
- Profit Margin Percentage:
(Profit Amount / Selling Price) × 100
Example Calculation
Let's say you purchase a product for $50.00 and you want to apply a 25% markup.
- Cost of Goods: $50.00
- Desired Markup Percentage: 25%
- Selling Price: $50.00 × (1 + (25 / 100)) = $50.00 × 1.25 = $62.50
- Profit Amount: $62.50 – $50.00 = $12.50
- Profit Margin Percentage: ($12.50 / $62.50) × 100 = 20%
This means you would sell the item for $62.50, making a profit of $12.50, which represents a 20% profit margin on the selling price.
.markup-calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
background-color: #f9f9f9;
padding: 25px;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1);
max-width: 700px;
margin: 20px auto;
color: #333;
}
.markup-calculator-container h2,
.markup-calculator-container h3 {
color: #2c3e50;
text-align: center;
margin-bottom: 20px;
}
.markup-calculator-container .calculator-form {
background-color: #ffffff;
padding: 20px;
border-radius: 8px;
border: 1px solid #e0e0e0;
margin-bottom: 25px;
}
.markup-calculator-container .form-group {
margin-bottom: 15px;
}
.markup-calculator-container label {
display: block;
margin-bottom: 8px;
font-weight: bold;
color: #555;
}
.markup-calculator-container input[type="number"] {
width: calc(100% – 22px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 5px;
font-size: 16px;
box-sizing: border-box;
}
.markup-calculator-container button {
background-color: #28a745;
color: white;
padding: 12px 20px;
border: none;
border-radius: 5px;
cursor: pointer;
font-size: 18px;
width: 100%;
transition: background-color 0.3s ease;
}
.markup-calculator-container button:hover {
background-color: #218838;
}
.markup-calculator-container .calculator-result {
margin-top: 20px;
padding: 15px;
background-color: #e9f7ef;
border: 1px solid #d4edda;
border-radius: 8px;
font-size: 17px;
color: #155724;
}
.markup-calculator-container .calculator-result p {
margin: 8px 0;
line-height: 1.6;
}
.markup-calculator-container .calculator-result strong {
color: #0a3d14;
}
.markup-calculator-container ul {
list-style-type: disc;
margin-left: 20px;
padding-left: 0;
margin-bottom: 15px;
}
.markup-calculator-container li {
margin-bottom: 8px;
line-height: 1.6;
}
function calculateMarkup() {
var costOfGoodsInput = document.getElementById("costOfGoods").value;
var desiredMarkupPercentageInput = document.getElementById("desiredMarkupPercentage").value;
var costOfGoods = parseFloat(costOfGoodsInput);
var desiredMarkupPercentage = parseFloat(desiredMarkupPercentageInput);
var resultDiv = document.getElementById("markupResult");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(costOfGoods) || costOfGoods < 0) {
resultDiv.innerHTML = "Please enter a valid non-negative cost of goods.";
return;
}
if (isNaN(desiredMarkupPercentage) || desiredMarkupPercentage < 0) {
resultDiv.innerHTML = "Please enter a valid non-negative desired markup percentage.";
return;
}
var sellingPrice = costOfGoods * (1 + (desiredMarkupPercentage / 100));
var profitAmount = sellingPrice – costOfGoods;
var profitMarginPercentage = (profitAmount / sellingPrice) * 100;
resultDiv.innerHTML =
"
Calculated Selling Price: $" + sellingPrice.toFixed(2) + "" +
"
Profit Amount: $" + profitAmount.toFixed(2) + "" +
"
Markup Percentage: " + desiredMarkupPercentage.toFixed(2) + "%" +
"
Profit Margin Percentage: " + profitMarginPercentage.toFixed(2) + "%";
}