Margin vs Markup, and Why the Difference Costs Money
A 50% markup is a 33% margin. Getting the two confused underprices products by a third, and the error…
Calculates gross margin, markup, profit and the selling price you need to hit a target margin.
The Profit Margin Calculator calculates gross margin, markup, profit and the selling price you need to hit a target margin. It runs as plain JavaScript inside the page, which means there is no upload step, no queue and no size limit imposed by a server — the only limit is your own device.
This tool uses margin = (price − cost) ÷ price × 100, while markup = (price − cost) ÷ cost × 100. The two are often confused: a 50% markup is only a 33.3% margin. Every intermediate value is shown on screen, so the result can be checked by hand.
A 50% markup is a 33% margin. Getting the two confused underprices products by a third, and the error…
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