Markup Formula

Also known as: Markup Percentage Formula

\text{Markup} = \frac{\text{Selling Price} - \text{Cost}}{\text{Cost}} \times 100

Markup = (Selling Price - Cost) / Cost × 100

What It Calculates

Calculates the percentage increase from cost to selling price. Unlike margin (based on revenue), markup is based on cost.

Symbol	Name	Unit	Description
Markup	Markup Percentage	%	Percentage added to cost to set the selling price

1Markup = (60 - 40) / 40 × 100 = 50%

Result: 50%

Margin and markup are NOT the same — 50% markup = 33% margin

Margin = (Revenue - Cost) / Revenue × 100

BEP = Fixed Costs / (Price - Variable Cost per Unit)

#pricing#business#retail