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Finance

Markup vs margin calculator

Convert between cost, price, margin and markup. The two percentages are not the same number.

Margin and markup are confused constantly, and the confusion always costs money in the same direction: a 50 percent markup is only a 33 percent margin. This shows both from the same two numbers.

Margin on price

40%

Markup on cost

66.7%

Profit per unit

CHF 40.00

Price multiplier

1.67

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So funktioniert es

  1. 1Enter what the item or hour costs you.
  2. 2Enter what you charge for it.
  3. 3Read both percentages side by side.

Für wen es gedacht ist

  • •Setting a retail or resale price
  • •Checking a supplier quote
  • •Explaining a price to a client

Profi-Tipps

  • Margin can never reach 100 percent. Markup can exceed it without limit.
  • Agree which of the two your team means before setting a target.

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