Business
Markup
The amount added to the cost price of a product to determine the selling price. Expressed as a percentage of cost. A 50% markup on a $10 item sets the price at $15.
Markup and margin describe the same gap but from different bases — markup divides profit by cost, while margin divides it by price — so a 50% markup is only a 33% margin. Confusing the two is a common pricing mistake that quietly erodes profit.
Key Formula & Relationship
Markup % = (Selling Price - Cost Price) / Cost Price × 100%
Reviewed by the Calculover Editorial Team for mathematical and practical accuracy.
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