Definition, Meaning & Synonyms

markup

Noun

/ˈmɑːrkʌp/

Definition

Markup refers to the amount added to the cost price of goods to cover overhead and profit.

Examples

The store applied a 20% markup on all clothing items.
To determine selling prices, businesses often use a standard markup based on their costs.
Understanding markup can help in setting competitive pricing strategies.

Meaning

In a business context, markup is the difference between the cost of a product and its selling price, typically expressed as a percentage of the cost. It includes the additional amount charged over the base cost to generate profit.