Calcola

Calcola

Used in “from cost + price” mode.

Target margin, markup, or value to convert.

%

Updates as you type

Risultato

La formula

Markup% = (Price − Cost) / Cost × 100. Margin% = (Price − Cost) / Price × 100. Price from margin: Cost ÷ (1 − margin%). Price from markup: Cost × (1 + markup%). Convert: margin = markup/(100+markup)×100; markup = margin/(100−margin)×100.

Markup = (P−C)/C · Margin = (P−C)/P · P = C/(1−m) = C(1+k)

Esempio svolto

  1. Cost $50, target margin 40% → Price = 50 ÷ 0.60 ≈ $83.33
  2. Profit ≈ $33.33; markup = 33.33/50 = 66.67%
  3. A 50% markup on $50 → price $75 → margin = 25/75 = 33.33%

Risultato: 40% margin ≠ 40% markup

Why markup and margin differ

Both measure profit relative to a base — but they use different denominators.

Markup is on cost

Markup asks “how much above cost?” A 100% markup doubles the cost. Common in wholesale conversations.

Margin is on price

Margin asks “what share of the selling price is profit?” A 50% margin means half the price is profit — which requires a 100% markup on cost.

Not a discount

Discount calculators reduce a list price. This tool builds or analyzes sell price from cost and profit targets.

Fatti interessanti

50% margin = 100% markup

If half the price is profit, price is double cost — a 100% markup.

Never mix the words

Teams that say “margin” but mean “markup” misprice products. Confirm the denominator.

Gross margin

In accounting, gross margin usually means (revenue − COGS) / revenue — the same idea as margin here.

Discount is different

A 20% off sale reduces price; it does not equal a 20% margin.

Keystone pricing

Traditional retail “keystone” is roughly 100% markup (≈ 50% margin).

Domande frequenti

Markup divides profit by cost; margin divides profit by selling price. The same dollar profit yields a higher markup % than margin %.

Price = cost ÷ (1 − 0.40). On a $50 cost: $50 ÷ 0.60 ≈ $83.33.

Markup% = margin% ÷ (100 − margin%) × 100. Example: 40% margin → 66.67% markup.

No. Discount reduces a list price. Markup/margin sets or analyzes profit relative to cost and price.

Riferimenti

  1. Gross margin — U.S. Small Business Administration (learning resources) Small-business pricing and margin concepts.
  2. Percentage calculations — NIST SP 811 Authoritative guidance on percentage arithmetic.