Enter what something costs you and what you sell it for to see your profit, margin and markup, plus the price to charge for any target margin.
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Margin vs markup
- Margin = profit ÷ selling price × 100.
- Markup = profit ÷ cost × 100.
- Price for a target margin = cost ÷ (1 − margin).
Example: an item costing 60 and selling for 100 makes a profit of 40, a 40% margin and a 66.7% markup.
Frequently asked questions
Why is a 50% markup not a 50% margin?
Markup is measured against cost and margin against price. Cost 100, price 150: the profit of 50 is 50% of cost but only 33.3% of price.
Should I include VAT or GST?
Use prices before tax, because VAT and GST are passed on to the government. Remove tax first with the VAT calculator.