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How to calculate Markup

The Markup formula, with plain worked examples you can check yourself.

Markup = (P − C) ÷ C × 100

The result is a percentage (%).

Worked examples

P = 600 · C = 500Markup = 20%
P = 640 · C = 400Markup = 60%
P = 600 · C = 500Markup = 20%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Positioning & Pricing.

Related terms

Value propositionMarket segmentationPenetration pricingPrice skimmingCompetitive pricingUnique selling proposition

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