## 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!

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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.

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