Calculating markup percentage is essential for businesses to understand the profitability of their products. It’s a measure of how much you add to the cost of goods or services when calculating your own sale price. The formula is simple: just divide your total cost by your sale price and multiply that figure by one hundred, and you have your markup percentage. So, if you buy something for $10, and sell it for $15, then your markup is 50%. Knowing exactly how much profit you can make off each product allows you to make savvy business decisions that are beneficial for both you and your customers.