An amount added to cost, usually as a percentage, to recover overhead, profit or a defined commercial adjustment.
Why it matters
Mark-up and margin are calculated differently, so the intended method should be explicit.
Example in practice
A subcontract cost is entered at net cost and the approved mark-up is applied as a separate calculation.
Use the term carefully
A percentage added to cost differs from a percentage margin on selling price. State the chosen basis and avoid applying an uplift twice.
Compare related terms
Margin ยท Overheads and profit
Use the price-review checklist to keep the client wording and approved basis consistent.