What is markup?
Markup: How much you add on top of the cost of an item, as a % of that cost: (price - cost) / cost x 100.
Markup = (price - cost) / cost x 100
Example
A shop buys a phone case for $5 and sells it for $8. It adds $3 on top of $5: a markup of $3 / $5 = 60%.
Made-up people and numbers from the cases of our course; the math is real.
A common mistake
Dividing by the price: $3 / $8 = 37.5% is the margin, not the markup.
Try it with your own numbers: Markup vs margin calculator (free, no sign-up).
Practise this in block 1
Block 1 of Ownwise is free, with no account needed to start: short lessons on costs, margin and break-even, then a made-up case where you make the decisions. This term has its own lessons in block 2, part of the paid practice pack.