How it works
Markup is profit as a share of cost: add it to the cost to get the selling price. Margin is the same profit as a share of the price.
price = cost × (100 + markup %) ÷ 100
cost = price × 100 ÷ (100 + markup %)
margin % = markup % × 100 ÷ (100 + markup %)
Worked example
You buy an item for $19.99 and want a 35% markup.
- 1Price19.99 × (100 + 35) ÷ 100 = $26.99
- 2Profit26.99 − 19.99 = $7.00
- 3Margin7.00 × 100 ÷ 26.99 = 25.93%
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20.00% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 100% | 50.00% |