How it works
Selling price = cost × (1 + markup ÷ 100).
A worked example
A cost of 60 with 50% markup gives a price of 90 and a gross margin of 33.33%.
What to keep in mind
Markup is a percentage of cost. Excludes transaction fees, delivery, taxes and overheads.
A common question
Does 50% markup mean 50% margin?
No. A 50% markup gives a one-third margin because profit is measured against a higher selling price.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.