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.