Handeware
Business

Markup

50%
Profit per item
$20.00
Margin
33.3%

This is arithmetic for general information, not financial advice.

Markup Calculator

Markup is how much you add to the cost of an item, shown as a percent of that cost. Margin is the share of the selling price you keep. The two use the same figures but answer different questions.

How it works

Markup is the profit divided by the cost, times 100. Margin is the profit divided by the selling price, times 100.

When you sell above cost, the selling price is bigger than the cost, so the margin is always the smaller of the two percentages.

Worked example

An item that costs $40.00 and sells for $60.00 has a profit of $20.00. That is a markup of 50%, and a margin of 33.3%.

Questions

Is markup the same as margin?

No. Markup is measured against the cost, and margin is measured against the selling price. The same sale gives a larger markup percent than margin percent.

Can I start from a markup and find the price?

This tool works one way, from cost and price. To find a price from a markup, multiply the cost by one plus the markup written as a decimal.

Should taxes be in the cost?

Not here. Enter the amounts you want counted, and leave out any tax you pass on to the buyer.

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