Markup vs margin
markup-to-margin converter, price for a target margin, and the true cost of a discount
Parameters
Result
Markup
50,00%
on cost
Margin
33,30%
of price
Price for 35% margin461,50 UAH
= markup5 384,60%
Price after 10% off405,00 → margin 25,90%
To earn the same profit after a 10% discount you must sell 42,90% more units.
50% markup ≠ 50% margin: markup is on cost, margin is on price. 33% margin = 50% markup. Formulas: margin = (price−cost)/price; price = cost/(1−margin). Discounts eat margin non-linearly: −10% off price at 33% margin cuts profit by a third.
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