Business & Commerce
Basic

Selling Price from Markup

The price to charge after adding a percentage markup to unit cost.

Formula

SP=Cost×(1+m)SP = Cost \times (1 + m)

Variables

SPSelling price
CostUnit cost
mMarkup (decimal)

Example

Cost $40 with 25% markup: 40×1.25 = $50

Did You Know?

Markup is figured on cost, while margin is figured on price — confusing the two is a classic pricing error.

pricingmarkupretail