Markup

Markup is the amount added to an item's cost to set its selling price, expressed as a percentage of the cost: markup = (price − cost) ÷ cost × 100. It is often confused with profit margin, which is measured against the selling price instead. The same dollar profit yields a higher markup than margin because cost is smaller than price.

Example: Buying at $80 and selling at $100 is a markup of $20 ÷ $80 = 25% (but a 20% margin).