Markup percentage shows how much profit is added above cost as a percentage of cost. It is useful when you know the cost and selling price and want to find how much the price was marked up.
Use the calculator to check your own numbers, then read the guide for formulas, examples, and common mistakes.
What Is Markup Percentage?
Markup percentage is the markup amount expressed as a percentage of cost.
If a product costs 50 and sells for 75, the markup amount is 25.
Because 25 is half of 50, the markup percentage is 50%.
Markup Percentage Formula
The markup percentage formula is: markup percentage = markup amount ÷ cost × 100.
Markup amount is selling price minus cost.
The full formula is: markup percentage = (selling price - cost) ÷ cost × 100.
Step 1: Find the Markup Amount
Start by subtracting cost from selling price.
If the selling price is 90 and the cost is 60, the markup amount is 30.
This means 30 was added above cost.
Step 2: Divide by Cost
Next, divide the markup amount by the cost.
Using the same example, 30 ÷ 60 = 0.5.
This shows the markup as a decimal.
Step 3: Multiply by 100
To convert the decimal into a percentage, multiply by 100.
0.5 × 100 = 50%.
So the markup percentage is 50%.
Example With Different Numbers
Suppose cost is 120 and selling price is 180.
Markup amount is 180 - 120, which equals 60.
Markup percentage is 60 ÷ 120 × 100, which equals 50%.
Markup Percentage vs Profit Margin
Markup percentage and profit margin can use the same cost and selling price, but they do not give the same percentage.
Markup percentage uses cost as the base. Profit margin uses selling price as the base.
For a detailed comparison, read Profit Margin vs Markup.
When Markup Percentage Is Useful
Markup percentage is useful when reviewing whether a product is priced high enough above cost.
It can also help compare pricing across products, services, or suppliers.
For the main cluster guide, read Markup Formula.
Use the Calculator
Use the Markup Calculator to calculate markup amount and markup percentage.
If you want to understand the final profit percentage based on selling price, use the Profit Margin Calculator.
Both calculations are useful, but they answer different pricing questions.
Conclusion
Markup percentage shows how much has been added above cost as a percentage of cost.
The formula is markup amount divided by cost multiplied by 100. It is helpful for pricing, but it should not be confused with profit margin.
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FAQs
What is markup percentage?
Markup percentage is the markup amount expressed as a percentage of cost.
What is the markup percentage formula?
Markup percentage = (selling price - cost) divided by cost, multiplied by 100.
What is the markup percentage if cost is 60 and selling price is 90?
The markup amount is 30, and 30 divided by 60 multiplied by 100 equals 50%.