The markup is the amount a seller adds to a product as a cost price.
Without a markup, the seller could not cover overheads or make a profit. For any business to profit or simply survive, there must be a markup.
Markup Formula:
Example of How to Deduce Markup:
If a product cost is ₹ 100 and the profit is ₹ 25.
Then, markup = Profit/cost
Markup = 25/100