How to Find a Number Before a Percentage Markup Has Been Added

Retail shops and other merchants will sell merchandise after it has been marked up by a certain percentage. Merchandise is usually purchased at one price and then marked up and sold at another price. This process allows the retail outlet to make a profit. Profit is represented by the difference between the selling price and the purchase price. To find an amount before a percentage markup has been added, you will need to put together a formula using the information you have.

Instructions

1

List the facts and variables you have at your disposal. Write down all of the information you have regarding this problem. If you are looking for a number before a markup is added, you will need to know what percent the number will be marked up and the amount of the markup. For example, if a number is going to be marked up six percent and the amount of the markup is $250, you can calculate the purchase price.

2

Take the information and put it into an equation. 6 percent of X = $250. You know that some number when marked up 6 percent will increase by $250. Divide $250 by 6 percent or .06 to equal $4,166. The number before the markup is $4,166.

3

Add the markup amount to the number you found. To get the markup total, add $4,166 to $250 to learn the number after the markup, which is $4,416. The retailer's purchase price would be $4,166 and the selling price would be $4,416.