Mark Up

Formal

Used to describe a price ‘uplift’ applied to the cost of manufacture in order to reach a required sales price. Eg, Cost of manufacture $10, Sales Price $15, then Mark Up is 50% - calculated as a $5 uplift divided by $10 cost = 50% Mark Up. NOT the same as Margin (which is 33%).

Real-world Example

A retailer buys a product for $40 and sells it for $60 - a mark up of 50% on cost, calculated on the buying price rather than the selling price (unlike margin).