Markup percentage is the proportion of total cost represented by profit. It is a concept used in managerial or cost accounting work. It is equal to the difference between the selling price and cost of a product, divided by its cost.
Markup % = (selling price – cost) / cost x 100
Where the markup formula is dependent on:-
Selling Price = the final sale price
Cost = the cost of the good
The cost of a product is $100, and then the selling price with a 25% markup would be $125. Then by applying the above formula:-