Margin ormarkup?
Margin and Markup Calculator: Price for the Margin You Want
Enter what an item costs you and what you charge. The receipt shows your margin, your markup, and the price you would need for the margin you actually want.
How it works
Margin = (price − cost) ÷ price
Markup = (price − cost) ÷ cost
Price for a target margin = cost ÷ (1 − target margin)
Markup = (price − cost) ÷ cost
Price for a target margin = cost ÷ (1 − target margin)
A $60 item sold for $100 has a 40% margin but a 67% markup. Confusing the two is one of the most common pricing mistakes: adding a 50% markup to cost gives only a 33% margin. More in gross vs net profit margins.
Common questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. The same sale always has a higher markup percentage than margin percentage.
How do I price for a 50% margin?
Divide the cost by 0.5, which doubles it. A $60 cost needs a $120 price for a 50% margin.