Markup
Markup is the amount added to a product's cost to set its selling price, usually shown as a percentage of cost.
Markup starts from cost: a 100% markup doubles the cost. Because it is measured against cost rather than price, markup is always a bigger number than margin for the same sale.
Wholesalers and retailers often price with markup because it is quick to apply to a supplier price. Keystone pricing, a common retail rule, is a 100% markup.
Formula
Markup % = (Price − Cost) ÷ Cost × 100
Price = Cost × (1 + Markup % ÷ 100)
Example
A product costs 20. With a 150% markup, the price is 20 × 2.5 = 50, which is a 60% margin.
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Common questions
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup), with both as decimals.
Can markup be over 100%?
Yes. Markup has no upper limit.