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Margin/Markup Calculator
Calculate profit margin and markup from cost and selling price. Reverse calculate selling price from target margin.
Enter cost and selling price to calculate margin and markup
💡 Examples
- • Cost $70, Selling $100 → Margin 30%, Markup 42.9%
- • Cost $100, Target margin 25% → Selling $133
- • Cost $100, Target markup 50% → Selling $150
📖 How to Use
- Select calculation mode
- Enter the cost
- Enter selling price or target margin/markup
- Click Calculate
- View margin rate, markup rate, and profit
✨ Features
- ✓Margin calculation: (Selling-Cost)/Selling × 100
- ✓Markup calculation: (Selling-Cost)/Cost × 100
- ✓Reverse calculate selling price from target margin
- ✓Reverse calculate selling price from target markup
- ✓Automatic profit calculation
- ✓Visual price breakdown
📐 Formula
Margin = (Selling-Cost)/Selling × 100, Markup = (Selling-Cost)/Cost × 100💡 How It Works
- •Margin is the ratio of profit to selling price. It shows 'what percentage of the selling price is profit.'
- •Markup is the ratio of profit to cost. It shows 'what percentage was added to the cost.'
- •For the same transaction, margin and markup are different. E.g., 25% margin = 33.3% markup
- •Margin reverse: Selling Price = Cost / (1 - Margin/100)
- •Markup reverse: Selling Price = Cost × (1 + Markup/100)
- •Retail typically uses margin; manufacturing often uses markup.
❓ FAQ
Q. What's the difference between margin and markup?
A. Margin is based on selling price, markup is based on cost. Cost $100, selling $150: margin is 33.3%, markup is 50%.
Q. What markup do I need for 30% margin?
A. About 42.9%. The relationship: Markup = Margin / (1 - Margin/100)
Q. Which industries use which metric?
A. Retail and restaurants typically use margin. Manufacturing and construction often use markup.
Q. What selling price gives 30% margin on $70 cost?
A. $100. Selling Price = $70 / (1 - 0.3) = $100
Q. Why can't margin be 100%?
A. 100% margin means cost is $0. In Margin = (Selling-Cost)/Selling, cost must be 0 for 100%.
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