Frequently Asked Questions
What is markup?
Markup is the percentage added to the cost price to determine the selling price. A 50% markup on a $70 cost results in a $105 selling price.
How is markup different from margin?
Markup is based on cost, margin is based on selling price. A 100% markup equals a 50% margin.
How should I set my markup?
Consider fixed costs, labor, desired profit, competitor pricing, and customer willingness to pay. Industry benchmarks can guide your decision.
Updated 2026 — latest rates