< Back to Glossary

Markup calculation

To calculate the markup as a percentage, you would divide the markup by the cost and multiply the result by 100:

Markup = (Selling price - Cost) / Cost * 100 = ($100 - $75) / $75 * 100 = $25 / $75 * 100 = 33.33%.

Therefore, in this example, the markup is 33.33%.

Markup is an important concept in business because it helps a company determine the selling price of a product. By adding a markup to the cost of a product, a company can cover its expenses and earn a profit. Markup is typically expressed as a percentage of the cost and can vary depending on the industry and the type of product being sold.

Revolutionize Your Accounting with Finanshels
Book Free Consultation
Bader Al Kazemiquote
"If you ever do any financial modeling/forecasting, I seriously can't recommend Finanshels enough. they are a dependable team of professionals who work hard to deliver results."
Bader Al Kazemi
Founder, Optimize App
Restaurants Accounting
The Restaurant Business An Accounting Guide

The Restaurant Business An Accounting Guide

Get Free Guide