Definition
Markup
Markup is the amount added to cost to reach the selling price, expressed as a percentage of cost; a $30 item sold for $50 has a 67% markup and a 40% margin.
Markup answers how to price: cost × (1 + markup). Margin answers how much you keep: profit ÷ price. A 50% markup is a 33% margin; a 100% markup is a 50% margin. Pricing by markup and reporting by margin is the usual source of confusion.
In Inventory Now
Enter a cost and a target margin or markup and see the price, or the other way round.
Margin calculatorRelated terms
