Margin and Markup Use Different Starting Points
Use the cost and selling price for the same quantity of the same product.
Write down both amounts
Use the cost and selling price for the same quantity of the same product. A unit cost and a case selling price cannot be compared directly. Keep the currency and treatment of taxes consistent.
Follow the denominator
An item costing 80 and selling for 100 has a difference of 20. That is 20% of its selling price but 25% of its cost. Margin is the first percentage; markup is the second.
Do not confuse gross and net profit
The difference only includes the cost you entered. Delivery, returns, payment fees, wages and overhead may change the eventual outcome. Add applicable costs deliberately or track them separately rather than treating a gross figure as take-home profit.
Check a discounted sale again
If the same item sells for 90 instead of 100, the difference falls to 10. Recalculate both percentages from that new selling price. A sale discount can reduce the gross difference much more sharply than its percentage suggests.
Put it into practice
Discount Calculator
Work out a sale price, savings and the combined effect of two successive discounts.
Everyday calculatorsMargin & Markup Calculator
Compare gross margin and markup from a cost and selling price without mixing their denominators.
Everyday calculatorsPercentage Calculator
Calculate a percentage of a number, find what percentage one number is of another, or measure percentage increase and decrease.
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