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Markup

Profit as a percentage of cost — different from margin

Markup is the ratio of profit to the cost of production or purchase, expressed as a percentage. Unlike margin, the base is cost, not selling price.

Markup = (Price − Cost) ÷ Cost × 100%

Cost: $80 · Price: $100
Markup = (100 − 80) ÷ 80 × 100% = 25%

Note: same $20 profit = 20% margin but 25% markup.

Calculate it yourself

Use the margin & markup calculator.

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