Calculating Markup From Price
Posted by Professor Cram in Markup and Markdown
Calculating Markup from Price
Calculating price markup is a breeze with our popular Formula Solver! Series. Use your own numbers and solve for either cost, markup rate, or price. It’s great for checking your homework answers, too!
Comments
2 Responses to “Calculating Markup From Price”
Leave a Reply
Get More Help!
Click one of these links to get more help from another Cramlet in this same chapter:
Shouldn’t the formula be: Price=Cost*(1+Markup). Take for example, cost = $1, markup = 50%. Then the formula would be 1*(1+.5)=$1.50, which is the correct selling price at a 50% markup. However, your formula applied to the same example looks like this: $1/(1-.5)=$2, which is incorrect. $1 marked up 50% is not $2!
A fair question, Tac. There are two ways to calculate markup – from Price and from Cost. The formula you describe is for figuring Markup from cost, while this example here is figuring it from the price.
We do have a formula solver that calculates Markup from Cost, check it out in the “Get More Help” section below.