By definition, the markup percentage calculation is cost X markup percentage, and then add that to the original unit cost to arrive at the sales price. The markup equation or markup formula is given below in several different formats. For example, if a product costs Rs 100, the selling price with a 25% markup would be Rs 125.
Gross Profit Margin = Sales Price – Unit Cost = Rs 125 – Rs 100 = Rs 25.
Markup Percentage = Gross Profit Margin/Unit Cost = Rs 25/Rs 100 = 25%.
Sales Price = Cost X Markup Percentage + Cost = Rs 100 X 25% + Rs 100 = Rs 125.