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Markup and margin: How we calculate

Compare margin on selling price with markup on cost.

How we calculate

Markup = profit / cost; margin = profit / selling price. Enter prices excluding VAT. In percent: markup = profit / cost × 100; margin = profit / selling price × 100.

Worked example

These illustrative inputs let you check the method. They are not figures for a real company or automatically current tax rates.

Inputs

Cost
80
Selling price
100

Results

Margin
20
Markup
25
Profit
20

Change assumptions in the calculator and compare outcomes. Money follows your input unit; figures from different periods need adjustment before comparison.

Sources