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Price, margin and markup

General calculation · any country

Margin is measured on the selling price; markup is measured on the cost. Mixing them up is one of the most common pricing mistakes: a 30% markup does not give you a 30% margin.

What do you want to work out?
€
Excluding sales tax. Include everything the price needs to cover.
%
Selling price
—
Profit per unit
—
Selling price
—
Margin
—
Markup
—
Margin and markup equivalents
MarginMarkup neededPrice with your cost

How it is calculated

  • Margin = (price − cost) ÷ price: measured on the selling price.
  • Markup = (price − cost) ÷ cost: measured on the cost.
  • Price from a margin = cost ÷ (1 − margin). Price from a markup = cost × (1 + markup).

Assumptions

  • Amounts exclude sales taxes (VAT, GST…).
  • Full unit cost: include everything you want the price to cover.