How to Calculate Markup

Markup formula

Markup = profit ÷ cost × 100.

Example

If a product costs 50 and sells for 80, profit is 30. Markup is 30 ÷ 50 × 100 = 60%.

Markup vs margin

Markup is based on cost. Margin is based on selling price. The same sale can have 60% markup but 37.5% margin.

Practical use

Markup is useful for pricing products and estimating selling prices.

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