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| Math Central | Quandaries & Queries |
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Question from Sussie, a parent: I sold an item for $75.00 It cost me $17.00 How do I calculate to come up with the Markup %? |
Hi Sussie,
The item cost you $17.00 and you sold it for $75.00 so the markup was $75.00 - $17.00 = $58.00. This markup as a percentage of your cost is $58.00/$17.00 × 100 = 341.2%. This is what is usually called the percentage markup. From your customers point of view, she paid $75.00 for the item and $68.00 of that was the markup. Thus the markup as a percentage of your customer's cost is $68.00/$75.00 × 100 = 90.7%. This is usually called the margin.
I hope this helps,
Penny
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