Share:
Glossary Finance

Markup

Markup is the amount added to a cost to reach the selling price, expressed as a percentage of the cost: `(price − cost) / cost`.

Last reviewed:

AdSense Placeholder
Slot: header_reference_page

In more detail

To reach a 40% Profit margin you need a 66.7% markup, not 40%. Mixing the two is a common pricing error.

Try these tools

Markup Calculator

Calculate markup and margin from any two of cost, selling price, profit, markup percentage or margin percentage.

See also

  • Glossary Profit margin
    Profit margin is profit as a percentage of the selling price: `(price − cost) / price`.
  • Glossary Break-even point
    The break-even point is the sales volume at which total revenue equals total costs, so profit is zero.
Back to Glossary
AdSense Placeholder
Slot: footer_leaderboard