Markup is the percentage difference from the cost to the sale price.
Price = Cost / (1 – (Gross Margin/100%))
Gross Profit (Dollars) = Price x (Gross Margin/100%)
Markup = (Price / Cost) x 100%
- Wikipedia – Markup (business) – Some example calculations on how to calculate markup in business.
- Investopedia – How are profit margin and markup different? & Markup – How to calculate markup and how it is involved with business.
- Accounting Tools – The difference between margin and markup – Breaking down how markup and margin are different.