Finance & Interest
Basic

Markup

Increase over cost as a percentage.

Formula

Markup=Price−CostCost×100%\text{Markup} = \frac{\text{Price} - \text{Cost}}{\text{Cost}} \times 100\%

Variables

PriceSelling price
CostCost price

Example

Selling a $10 item for $15 is a markup of 5/10 × 100% = 50%.

Did You Know?

Markup and margin are not the same: a 50% markup on cost is only a 33% margin on the selling price.

markuppricingbasic