Markup formula
Markup % = (Selling price − Cost) ÷ Cost × 100
Selling price = Cost × (1 + Markup ÷ 100)
Cost ₹50, selling price ₹80: markup = 30 ÷ 50 × 100 = 60%, while the margin is 30 ÷ 80 × 100 = 37.5%.
Markup vs margin
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.33% |
| 100% | 50% |
| 200% | 66.67% |
Frequently asked questions
What is the difference between markup and margin?
Markup compares profit with cost; margin compares profit with the selling price. The same sale always has a higher markup than margin.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. A 50% markup is a 33.33% margin.