Markup & margin

Markup ≠ margin: both sides of the price

Input

Metrics

unit profit: 300 ₴

37,5%

margin

Markup
60%
Price at target margin
769,2 ₴
Required markup
53,8%

Markup = (price−cost)/cost, margin = (price−cost)/price. 100% markup = 50% margin, 50% markup = 33% margin. For a 30% target margin, price = cost ÷ 0.7. Typical retail margin: groceries 15–25%, clothing 40–60%, accessories 60–100%.