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 × 100What It Calculates
Calculates the percentage increase from cost to selling price. Unlike margin (based on revenue), markup is based on cost.
variables
| Symbol | Name | Description |
|---|---|---|
| Markup | Markup Percentage | Percentage added to cost to set the selling price |
Worked Examples
1
Markup = (60 - 40) / 40 × 100 = 50%Result: 50%
Common Mistakes
Margin and markup are NOT the same — 50% markup = 33% margin
Try a Calculator
Related Formulas
#pricing#business#retail