What is markup?

Markup is how much you add on top of the purchase price, as a percentage of that price.

Markup and margin are often confused. A 100 % markup is a 50 % margin.

For ad calculations use margin, not markup, otherwise break-even will look better than it is.

Formula

Markup = (price - cost) / cost x 100

Example

You buy for 40 EUR and sell for 60 EUR. Markup is 50 %, margin is 33 %.

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