A markup is added into 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.

Calculating markup percentage helps a trader get most out of the pricing method.

**Formula to calculate markup percentage.**

**Example:**

A carpenter bought a second hand chair at $ 30, after repairing it, he sold it at $ 50. Calculate the markup percentage.

Therefore, the markup percentage is 66.67%.