Guide
How to Calculate a Markup
Understand markup as the amount added to a cost to reach a selling price.
Key idea
Understand markup as the amount added to a cost to reach a selling price.
Formula or method
Markup = selling price − cost. Markup percentage = markup ÷ cost × 100.
Worked example
Start with the values in your question, substitute them into the formula, and keep the units consistent. For example, if a rate is given as 15%, use 0.15 when a formula requires a decimal.
Common mistakes
- Mixing percentage points with percentage change.
- Using different units for the same calculation.
- Rounding too early when several steps are involved.
Tip: Use the matching AvyTool calculator to check your result after working through the method.
Why the result can differ
Real-world calculations can include assumptions, rounding, fees, tax rules, calendar conventions, or other details. Treat simple calculator results as estimates when the underlying situation is more complex.