20% Markup on $400
Selling price, gross profit, gross margin — with full formula and industry context.
Selling Price
$480.00
Gross Profit
$80.00
Gross Margin
16.67%
$400 × 1.2 = $480.00
The Formulas
Selling price:
Cost × (1 + Markup/100)
Gross profit:
Price − Cost
Gross margin:
(Profit ÷ Price) × 100
Markup check:
(Price − Cost) ÷ Cost × 100
Step-by-Step
1
Convert to multiplier
1 + 20/100 = 1.2
2
Multiply by cost
$400 × 1.2 = $480.00
3
Gross profit
$480.00 − $400 = $80.00
4
Gross margin
$80.00 ÷ $480.00 × 100 = 16.67%
Industry Assessment: Low
Workable for high-volume, low-overhead businesses such as grocery, electronics, or commodity supply.
Real-World Context
At $400 cost with a 20% markup, the $480 selling price is typical of contractor quotes or professional services.
Frequently Asked Questions
What is 20% markup on $400?
A 20% markup on a $400 cost gives a selling price of $480.00, gross profit of $80.00, and a gross margin of 16.67%%. Formula: $400 × 1.2 = $480.00.
What is the difference between 20% markup and 20% margin?
20% markup means profit is 20% of the cost ($400). The equivalent gross margin — profit as % of selling price ($480.00) — is 16.67%%. Markup is always the larger number.
What gross margin does a 20% markup produce?
A 20% markup produces a 16.67% gross margin. Formula: Margin = Markup ÷ (1 + Markup/100) = 20 ÷ 1.2 = 16.67%.
How do I apply a 20% markup in a spreadsheet?
If cost is in A1: =A1*(1+20/100) gives the selling price. For a column: =A1*1.2 dragged down.
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