Markup Calculator
Find the exact multiplier applied on top of the cost price.
What is Markup?
If the Profit Margin looks at the \"whole pie\" (Selling Price), theMarkuplook down: at the cost price. It is the rate you add on top of what you paid to the supplier.
Markup vs Profit Margin
Imagine that you bought a pair of sneakers for R$ 100 and want to make R$ 100 in profit. You sell them for R$ 200.
Your Profit Margin is 50% (Because the profit of 100 is half of the 200 bill that the customer paid).
YoursMarkup is 100%(Because you added +100% on top of the original cost of 100 to price it).
In sectors like clothing and food, using the Markup Multiplier Index is the golden rule. You hear things like: \"In this store we use a 2.5x markup,\" which means that if something cost 10 reais at the factory, the store will automatically label the shelf with 25 reais.