markup on cost price
for example if a profit sells for $ 100 and costs $ 70 to manufacture its margin is $ 30 or stated as a percentage the margin percentage is 30 % calculated as the margin divided by sales markup is the amount by which the cost of a product is increased in order to derive the selling priceto use the preceding example a markup of $ 30 from the $ 70 cost yields the $ 100 price or stated as a percentage the markup percentage is 42 9 % calculated as the markup amount divided by the product costor example if you know that the cost of a product is $ 7 and you want to earn a margin of $ 5 on it the calculation of the markup percentage is $ 5 margin $ 7 cost 71 4 % if we multiply the $ 7 cost by 1 714 we arrive at a price of $ 12