Last updated: March 2, 2026 by Sarah Chen

How to Calculate Markup

Formula

Markup is the percentage added to the cost to determine the selling price.

Understanding markup helps businesses set prices that cover costs and generate desired profit.

Common use cases:

  • Retail pricing
  • Product pricing strategy
  • Understanding cost-plus pricing

Frequently Asked Questions

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Sarah Chen

Financial Analyst, CFA

Sarah is a Chartered Financial Analyst with over 8 years of experience in investment management and financial modeling. She specializes in retirement planning and compound interest calculations.

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