Accounting glossary
What is markup?
The percentage added to cost to reach a selling price. Cost $60, markup 50% → price $90. Retailers often think in markup while accountants report in margin; a shop that confuses them leaks profit on every shelf.
Example
Buy at $60 and apply a 50% markup: the price becomes $90, and the margin on that sale is 33.3%.
Markup is measured from cost, margin from the selling price. A 100% markup is a 50% margin — the same transaction described two ways.
In SeroBooks
Purchase costs are tracked per product, so pricing decisions start from truth. Markup calculator →
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