What is markup?
Markup is the percentage added to a product or service cost to determine its selling price. It represents gross profit relative to cost of goods sold.
Markup formula
Markup (%) = ((Selling Price - Cost) / Cost) × 100
Markup vs. profit margin
Markup measures profit against cost. Profit margin measures profit against selling price. If an item costs $80 and sells for $100, profit is $20: markup is 25% and margin is 20%.