METHOD
Formula and method
Margin=(selling−cost)/selling; markup=(selling−cost)/cost.
Margin on selling price and markup on cost
Distinguish margin from markup on cost.
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02
Your result
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About this result
Informational calculations. Check assumptions, dates and jurisdiction before making a decision.
Full disclaimerWhat is the difference between margin and markup?
Margin is gross profit divided by the selling price, while markup is the same profit divided by the cost price. With a cost of BAM 60 and a selling price of BAM 100 the profit is BAM 40, the margin 40% and the markup about 66.67%. Enter both prices on the same tax basis, with or without VAT, and note that overhead is not part of gross profit.
TRACEABLE
Sources and validity
Basic arithmetic or geometry using the formula shown. Uses only your inputs.
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