Mark Up Rate is a business term that refers to the percentage increase applied to the cost of goods or services in order to generate a profit. It’s the difference between what it costs to produce or acquire an item and the price it can be sold for. Basically, it’s the cost of doing business. Think of it as a way to turn a basic cost into a higher-value sale. Knowing how to calculate mark up rates is key for businesses looking to maximize their profits. By understanding this concept, you can stay competitive without sacrificing quality and customer satisfaction.