Translate a desired margin into a selling price and compare it with markup.
Margin and Markup Calculator
Form
Results
Markup
0
Revenue
0
Profit
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Table of Contents
1
What is Margin and Markup?
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How to Use This Calculator
- Enter or select Cost, Margin.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
Price = cost/(1−margin); markup=(price−cost)/cost
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Variables Explained
| Input | What it means |
|---|---|
| Cost | The cost amount included by this calculation; keep it on the same basis as the selling amount. |
| Margin | Use the measured or stated value for this item, with the unit or category shown beside the field. |
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Worked Example
With cost 60 and a 40% margin, price is 100 and markup is 66.67%.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- A margin of 100% cannot produce a finite price when cost is positive.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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