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Margin & Markup

Profit, margin %, and markup % from cost and price.

Free to use, no sign-up required. Margin & Markup is one of 198 tools built into Xenition, alongside a chat that can use them for you.

Works out profit, margin and markup from a cost and a selling price, or finds the price you need for a target margin or markup.

How to use Margin & Markup

  1. Pick a mode: Have price, Target margin or Target markup.
  2. Enter the Cost, then the Sell price, Target margin % or Target markup % for that mode.
  3. Read Sell price, Profit, Margin and Markup.
  4. Optionally enter a Quantity to see Total profit and Revenue.

How it works

Profit = price − cost. Margin = profit ÷ price × 100, and markup = profit ÷ cost × 100. For a target margin, price = cost ÷ (1 − margin ÷ 100), which only works for margins from 0 to under 100%. For a target markup, price = cost × (1 + markup ÷ 100).

Example

Cost 40 and price 60 gives a profit of 20, a 33.3% margin and a 50.0% markup. For a 40% target margin on the same cost, the price must be 66.67, which is a 66.7% markup. Selling 50 of them earns 1,333.33 profit on 3,333.33 revenue.

Questions about Margin & Markup

What is the difference between margin and markup?

Both use the same profit. Margin divides it by the selling price, markup divides it by the cost, so markup is always the larger number for a profitable sale.

Why can a margin not reach 100%?

A 100% margin would mean the whole price is profit, which needs a cost of zero. Markup has no such ceiling: selling at triple the cost is a 200% markup.

Use it from chat

You do not have to open Margin & Markup to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.

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