Markup pricing formula is a tool businesses use to calculate the ideal price for their products and services. At its core, it refers to adding a certain mark up or percentage on top of raw costs to arrive at the final sale price. It can also be used to help determine competitive pricing, profitability levels, and budgeting estimations. Markup pricing formulas involve careful calculations and thoughtful decision-making to ensure that you maximize your profits while still offering your customers an attractive price point. With this formula, you’ll have greater clarity and confidence in all of your pricing decisions.