What do you call the amount by which a price is increased?

The amount by which a price is increased is called a markup. A markup represents the difference between the cost of a product and its selling price. It is often expressed as a percentage of the cost. For example, if a product costs $50 and it is sold for $70, the markup would be $20 or 40% of the cost. Markups are commonly used in retail and business to ensure that costs are covered and to generate profit.

Understanding markup is essential in pricing strategy, as it helps businesses set prices that not only cover their expenses but also provide a reasonable profit margin.