300% Markup on $5
Selling price, gross profit, gross margin — with full formula and industry context.
Selling Price
$20.00
Gross Profit
$15.00
Gross Margin
75%
$5 × 4 = $20.00
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 + 300/100 = 4
2
Multiply by cost
$5 × 4 = $20.00
3
Gross profit
$20.00 − $5 = $15.00
4
Gross margin
$15.00 ÷ $20.00 × 100 = 75%
Industry Assessment: Premium / IP
Characteristic of software, pharmaceuticals, or luxury goods where marginal cost is near zero.
Real-World Context
A $5 input marked up 300% to $20 is typical of food service — the $15 gross profit per unit only makes sense at high daily volume.
Frequently Asked Questions
What is 300% markup on $5?
A 300% markup on a $5 cost gives a selling price of $20.00, gross profit of $15.00, and a gross margin of 75%%. Formula: $5 × 4 = $20.00.
What is the difference between 300% markup and 300% margin?
300% markup means profit is 300% of the cost ($5). The equivalent gross margin — profit as % of selling price ($20.00) — is 75%%. Markup is always the larger number.
What gross margin does a 300% markup produce?
A 300% markup produces a 75% gross margin. Formula: Margin = Markup ÷ (1 + Markup/100) = 300 ÷ 4 = 75%.
How do I apply a 300% markup in a spreadsheet?
If cost is in A1: =A1*(1+300/100) gives the selling price. For a column: =A1*4 dragged down.
Need a different markup calculation?
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