MONEYRADAR / Free tool
Margin and markup
Compare two measures that use the same difference between sale price and cost, but different bases.
How the calculation works
Difference per unit = sale price − cost. Margin = difference / sale price × 100%. Markup = difference / cost × 100%.
Worked example
Example: cost 60 and sale price 100. The difference is 40; margin is 40% and markup is 66.67% after rounding.
Understanding the result
Margin expresses the difference as a share of sale price; markup expresses it relative to cost. These percentages are not interchangeable.
Limits and assumptions
The calculation excludes fees, taxes, delivery, returns and fixed costs. A percentage is not calculated when its denominator is zero.
Related reading
Calculations run in your browser and are not personalised financial advice.