Profit as a percentage of cost (margin is profit as a percentage of price).
Confusing markup with margin is the classic pricing mistake: a 50% markup is only a 33% margin. Decide which one you mean before setting prices.
Formula: Price = Cost × (1 + Markup%)
Example: $40 cost + 60% markup = $64 price = 37.5% margin.
FAQ
What is Markup in simple terms?
Confusing markup with margin is the classic pricing mistake: a 50% markup is only a 33% margin. Decide which one you mean before setting prices.
How is it calculated?
Price = Cost × (1 + Markup%). Example: $40 cost + 60% markup = $64 price = 37.5% margin.