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Markup and margin are both percentages of profit, but measured from different starting points. Mixing them up is one of the most common pricing mistakes in retail.
Markup = profit / cost x 100. Margin = profit / selling price x 100. Profit = selling price - cost. Enter any two values and the calculator works out the others.
Example: an item costs 80 and sells for 100. Profit is 20, markup is 20 / 80 = 25% and margin is 20 / 100 = 20%. Going the other way, a 20% margin on a cost of 80 needs a price of 100.
Use it when you:
With price tracking on, Up Stock records the cost and price of each sale and shows daily profit calculated first in, first out, so your margins are real numbers, not estimates.
Markup compares profit with cost; margin compares profit with the selling price. The same item always has a higher markup than margin: 25% markup equals 20% margin.
No. Margin is a share of the selling price, so it is always below 100%. Markup has no upper limit.
It varies widely. Groceries often run on 10% to 25%, clothing on 50% or more, electronics on 10% to 30%. What matters is that the total covers your rent, wages and other costs.
Yes. Use the landed cost, which adds freight, duty and fees to the purchase price, or your margins will look better than they are.
Your price from cost, target margin and tax
Freight, duty and fees spread across every item
Sale price, margin left and sales needed to keep profit