Markup covers your cost only. Rent, wages, fees and tax also have to be paid from the profit, so a markup that looks high may leave little. Rounding the price to a neat figure changes the markup slightly.
Frequently asked questions
How is the selling price worked out?
Selling price = cost × (1 + markup ÷ 100). A cost of RM80 with a 25% markup sells for RM100.
Why is the margin lower than the markup?
Margin is measured against the selling price and markup against the cost. The selling price is larger, so the same profit is a smaller percentage. A 25% markup is a 20% margin.
Is the price before or after tax?
This is the price before tax. Add SST or other tax afterwards if it applies to what you sell.