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.
Markup vs margin calculator
Convert between cost, price, margin and markup. The two percentages are not the same number.
Margin on price
40%
Markup on cost
66.7%
Profit per unit
CHF 40.00
Price multiplier
1.67
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Как это работает
- 1Enter what the item or hour costs you.
- 2Enter what you charge for it.
- 3Read both percentages side by side.
Для кого это
- •Setting a retail or resale price
- •Checking a supplier quote
- •Explaining a price to a client
Советы профи
- 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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