Markup Calculator
Calculate selling prices by adding markup or targeting a specific profit margin.
CACalifornia Building Code (Title 24)
References & Sources
Standards Cited
- RSMeans — RSMeans Data — Construction Cost Estimating
Industry-standard cost data reference for North American construction, including standard markup and overhead percentages
Formulas Used
- Markup (percentage):
sellingPrice = costPrice x (1 + markupPercent / 100)
Source: Standard accounting formula — Markup is calculated as a percentage of cost price - Markup (fixed):
sellingPrice = costPrice + fixedMarkup
Source: Standard accounting formula - Profit Margin:
profitMargin = (markupAmount / sellingPrice) x 100
Source: Standard accounting formula — Margin is profit as a percentage of selling price (not cost) - Markup Percentage:
markupPercent = (markupAmount / costPrice) x 100
Source: Standard accounting formula — Markup is profit as a percentage of cost price - Selling Price for Target Margin:
sellingPrice = costPrice / (1 - targetMargin / 100)
Source: Standard accounting formula — Derives the required selling price to achieve a desired profit margin - Discount Calculation:
discountedPrice = sellingPrice x (1 - discountPercent / 100)
Source: Standard accounting formula
Key Assumptions
- Markup is calculated on cost price; profit margin is calculated on selling price — Standard accounting convention (GAAP)
- A 50% markup on cost yields a 33.3% profit margin on selling price — Standard accounting relationship between markup and margin
- Typical NA construction overhead and profit markup ranges from 10-20% — RSMeans estimating guidelines