# Markup

**Definition:** Markup is how much you add to the cost of an item to get its selling price, shown as a percentage of the cost. Markup = (price − cost) ÷ cost × 100. An item that costs 7,000 and sells for 10,000 has a 42.9% markup, which is the same as a 30% margin.

To hit a target margin, do not add that percentage to cost. Divide instead: price = cost ÷ (1 − margin). A 30% margin on a 7,000 cost needs a price of 10,000, not 9,100.

## Related

- [Pricing calculator](https://profynix.com/tools/pricing-calculator)
- [Profit margin](https://profynix.com/glossary/profit-margin)