How to calculate markup
Markup (calculation)
Markup is the difference between your buy and sell price divided by your buy price, times 100. (See how to apply a markup).

How to calculate markup
Example of a markup calculation
Let’s say you make sofas for $1000 and sell them for $1350, and want to know your markup. The calculation goes like this:

Using markup to set prices
Many businesses apply a set markup to inventory costs to arrive at a retail price. In that case, the equation works the other way around.

Markup is expressed as a decimal. For example a 35% markup would be shown as 0.35.
Example of a marked-up sales price calculation
Let’s say you make sofas and the cost to produce one is $1000. You’ve decided on a 35% markup:

Markup can be expressed as a decimal, so 35% can be shown as 0.35.