Markup Calculation is the difference between the cost of a product or service and the price being charged by a business. It’s typically expressed as a percentage: Markup Amount = (Selling Price – Cost Price) / Cost Price x 100. Calculating markups helps businesses ensure that they’re making profits and covering their overhead costs, helping them stay in business for the long-term. By understanding markup calculation, businesses can make sure that they’re charging an optimal price for the goods and services they provide.