Markup і s the ratio between the cost of a good or service and its selling price. It is expressed as a percentage over the cost. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit . The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product . [1] Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price. [2] Retail markup is commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Source: https://en.wikipedia.org/wiki/Markup_(business)