What Is Markup?
Markup is the amount added on top of an item's cost to determine its selling price, typically expressed as a percentage of that cost (not the final price, which is what makes it different from a profit margin). To find the selling price, multiply the cost by (1 + the markup rate as a decimal).
Example
An item that costs a store $40, marked up 50%, sells for $40 × (1 + 0.50) = $40 × 1.5 = $60.