Markup: profit relative to unit cost

Markup is profit relative to unit cost: (price − unit cost) ÷ unit cost × 100%.

Formula

Markup = (price − unit cost) ÷ unit cost × 100%

The denominator is unit cost. A 100% markup on a cost of 3,000 ₽ gives a price of 6,000 ₽ and a 50% margin.

Price — selling price (₽)
Unit cost — variable cost per unit (₽)

Worked example

Price: 5 000 ₽
Unit cost: 3 000 ₽

Profit = 5,000 ₽ − 3,000 ₽ = 2,000 ₽
markup = 2,000 ₽ ÷ 3,000 ₽ × 100%

Result: 66.7%.

How to interpret it

Markup helps set a price: it shows how much to add to purchase cost.
The same currency markup produces a different margin at a different price. A higher price means a smaller margin share. Advertising economics use margin.

Common mistakes

Treating markup as margin and overstating affordable CAC.
Calculating markup from the selling price.
Comparing product markups with different variable-cost structures.

Calculate with your own data

Open “Margin and markup” with an example

The calculation runs in your browser; the example link restores its values in the calculator. Our calculation methodology documents formula versions, units and rounding.

Editorial team: MARKMA Editorial Team. Reviewed: 2026-09-25.