Markup vs Margin Calculator

When to Choose Markup or Margin

What the market will bear, and what the customer is willing to pay, will ultimately impact your goods selling price (basic supply and demand economics).

Knowing your profit margins and how much cash you make from each product sale is critical to your businesses planning and ultimate success.

Don’t get caught out. It’s basic stuff but so many businesses get it wrong.

Markup Calculator

Margin Calculator

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Markup & Margin Frequently Asked Questions

& Really Good Answers!

What is Margin?

Margin is basically the difference between the cost you buy your product for and the price you sell your product for.

What’s the difference between markup vs margin?

“Markup” is the amount by which the cost of a product is increased in order to derive the selling price. For example, a markup of $30 from the $70 cost yields a $100 price. Or, stated as a percentage, the markup percentage is 42.9% (calculated as the markup amount divided by the product cost).

“Margin” is sales minus the cost of goods sold. For example, if a product sells for $100 and costs $70 to manufacture, its margin is $30. Or, stated as a percentage, the margin percentage is 30% (calculated as the margin divided by sales).

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