Markup price is a business term used to describe the difference between the cost of a product or service and its selling price. It’s the amount added to the cost price in order to create a profit margin for the seller. To calculate markup, simply divide the profit by cost and multiply it by 100. For example, if the cost of an item is 10 dollars and you sell it for 13 dollars, then you’ve earned 3 dollars in profit and your markup is 30%. Markup price is an important factor when setting prices for products and services, and a wise business decision maker must consider factors such as market conditions, competition, and supply and demand when deciding on a markup level.