Money Math · Lesson Plan

Calculating a Sales Markup

Stores buy products at one price and mark the price up to make a profit when they sell. This lesson teaches the two-step markup calculation: find the markup amount (purchase price × markup percent), then add it to the purchase price to get the new sale price. Students practice on a range of items and prices.

Grades 5–8 Lesson Plan 30–45 minutes Free Lesson

Calculating a sales markup lesson illustration

For Teachers

Lesson at a glance

Topic: Money Math
Grade Level: Grades 5–8
Resource Type: Lesson + Worksheet
Estimated Time: 30–45 minutes
Format: Lesson + worksheet + answer key
Materials: Printable lesson, worksheet, answer key, calculator

What Students Learn

Learning objectives

Explain what a sales markup is and why stores use one
Convert a markup percent to a decimal
Calculate the markup amount as a percent of the purchase price
Add the markup to the purchase price to find the new sale price
Solve two-step markup problems for a range of items

Materials

What you’ll need

Printed copies of the lesson and worksheet (one per student)
Calculators
Pencils
Whiteboard or projector for worked examples

Key Terms

Vocabulary

Markup: The amount a store adds to the purchase price to make a profit.
Purchase price: The price a store pays to buy an item.
Sale price: The price a store charges customers — purchase price plus markup.
Percent: A part out of one hundred.
Profit: Money a business keeps after costs are covered.
Decimal: A percent written as a part of a whole for multiplying.

For Teachers

Lesson plan

Estimated time: one 30–45 minute class period.

Lesson sequence

Introduction (5 min). Ask why a store sells items for more than it paid. Introduce markup as how stores make a profit.
Teach the two steps (12 min). Work the fountain-pen and CD examples: (1) markup amount = purchase price × markup percent; (2) sale price = purchase price + markup.
Worksheet (15 min). Students solve five two-part markup problems, finding both the markup amount and the new sale price.
Review (8 min). Check answers with the answer key and connect markup to prices students see in stores.

Assessment

Assess the completed worksheet against the included answer key.

Discussion

Discussion questions

What is a sales markup, and why do stores use one?
What are the two steps to find a new sale price after a markup?
Why do you convert the markup percent to a decimal first?
How is a markup different from the final profit a store keeps?
Why might two stores mark up the same item by different percents?

Printable Lesson, Worksheet & Answer Key