Quick calculator
Markup vs Margin Helper
What is the difference between markup and margin on this deal?
Enter the required fields to see your result.
Free calculator
Markup vs Margin Calculator
Use this to check whether a deal conversation is using margin or markup before the numbers get confused.
Settings
Currency and tax settings
Used where retail prices are included in the calculation. Margin estimates use excluding-tax retail price.
Retailer prices are often discussed including sales tax / VAT / IVA, but margin is usually assessed excluding tax. This tool converts the entered price where needed.
Free: remembered on this device. Pro: saved to your account and used across calculators and exports.
Pricing caveat
Retail selling prices are at the sole discretion of the retailer. Calculations are estimates based on the inputs provided and should be checked against your own internal process.
When to use this
- You want to check whether someone is talking about margin or markup.
- You need a quick profit, margin and markup comparison from two numbers.
Formula used
- Retail selling price excluding tax is calculated from the entered tax basis.
- Cash profit = retail selling price excluding tax - cost.
- Margin % = cash profit / retail selling price excluding tax. Markup % = cash profit / cost.