Markup: definition, example, and why it matters
Markup ≠ margin. 40% markup on a $100 part = $140 sell price = 28.6% margin. Most trades mark up parts 25–50% and small consumables 100% or more.
Example: Cost $100 × 1.40 = $140 sell price, $40 profit, 28.6% margin.
- Short definition. The percentage added to your cost to determine the customer-facing sell price.
- Category. Markup is a invoicing term used by service businesses when billing customers.
- How Glo Invoice handles it. Glo Invoice builds markup into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does markup mean?
Markup ≠ margin. 40% markup on a $100 part = $140 sell price = 28.6% margin. Most trades mark up parts 25–50% and small consumables 100% or more.
Can you give a markup example?
Cost $100 × 1.40 = $140 sell price, $40 profit, 28.6% margin.
