HOW TO

CALCULATE
MARKUP
PERCENTAGE
Lesson Objective:

 At the end of the lesson, the students are expected to:

1. Calculate peso and percentage markup according to
standard procedure
2. Define markup, differentiate peso and percentage
markup.
3. Explain the importance markup.
 Let us determine how much you already know about markup.
Pre-Test
Items Purchase Cost/Buying Price Selling Price Peso Markup
Percentage Markup
Ibos 5.00 7.00
Turon 7.00 10.00
Pulvoron 3.00 4.00
Special Halo-Halo 25.00 35.00
Chiffon Cake 75.00 150.00
 Answer:

Items Purchase Cost/Buying Price Selling Price Peso Markup

Percentage Markup
Ibos 5.00 7.00
2.00 0.285 0r 29%
Turon 7.00 10.00
3.00 0.3 or 30%
Pulvoron 3.00 4.00
1.00 0.25 or 25%
Halo-Halo 25.00 35.00
10.00 0.285 or 29%
Chiffon Cake 75.00 150.00
75.00 0.5 or 50%
MARKUP
isthe difference between how much
an item costs you, and how much
you sell that item for it's your profit
per item. Any person working in
business or retail will find the skill
of being able to calculate markup
percentage very valuable.
1. Calculate your peso markup.
This is done by subtracting your
buying price from your selling
price.
 Example

Selling price 15.00

Purchase cost/buying
price - 10.00

Peso markup 5.00

2. Decide whether you want to calculate your
percentage markup based on cost or selling
price. Once you choose which you will be
using to calculate, it is important you stick to
the method you choose throughout all your
calculations, or you will end up with faulty
data. If you decide to calculate your percent
markup based on cost, go on to Step 3. If you
decide to calculate your percent markup
based on selling price, go on to Step 4.
3. Calculate percent markup based on
cost. This is done by dividing the peso
markup by the cost.
Example
Peso markup
5.00
Purchase cost/buying price ÷10.00
Percentage mark up
.5 or 50%
4. Calculate your percent markup based
on selling price. This is done by dividing
the peso markup by the selling price.
Example
Peso markup
5.00
Selling price
÷15.00
Percentage mark up .33 or
33%
Make sure you consistently use either cost of the
product or selling price to find the percent
markup on an item. Even though the cost, selling
price, and peso markup will always be the same,
the percentage markup will be drastically
different depending on if you calculate it using
selling price or cost. Using selling price will give
you a lower percentage markup (assuming you
are making a profit), while using cost will give
you a higher percentage markup.
ACTIVITY 1: Calculate the peso markup and percentage markup.
Group Activity (for Group 1 & 2)
Items Purchase Cost/Buying Price Selling Price Peso Markup Percentage Markup
1. Siopao 10.00 13.00 __________ ____________
2. Mango Graham 50.00 65.00 __________ ____________
3. Chocolate Cake 350.00 400.00 __________ ____________
4. Bread Roll 15.00 20.00 __________ ____________
5. Pili Nut 90.00 120.00 __________ ____________
Group Activity for Group 3 & 4
6. Biko 120.00 160.00 __________
____________
7. Sweet Corn 18.00 25.00 __________ ____________
8. Embutido 80.00 100.00 __________
____________
9. French Fries 48.00 65.00 __________ ____________
10. Butter Oats 65.00 70.00
Assignment: Given the following recipe and its estimated cost, compute for the total purchase cost and
impose a 50% mark up to determine the selling price of your product. Yield=24 servings
ITEM UNIT COST TOTAL COST PESO MARKUP SELLING
PRICE/SERVING
2kg. Chicken 150.00/kilo
1 head garlic 80.00/kilo
20 pcs./kilo
4 Tbsp. Soy sauce 16.00/bot
Approx. 32Tbsp.
1 tsp. Black Pepper 1.00/pack
½ tsp/pack
½ cup vinegar 16.00/bot
Approx. 2C/bot
2Tbsp. Cooking Oil 20.00/bot
Approx. 32T/bot
TOTAL

Selling price = Total cost + Peso mark-up

No. of yield
SP= _____