Markup: Profit as a percentage of cost. Formula: Markup = (Price - Cost) / Cost Γ 100%
Margin: Profit as a percentage of price. Formula: Margin = (Price - Cost) / Price Γ 100%
Example: Cost $80, Price $100. Markup = 20/80 = 25%, Margin = 20/100 = 20%. Same $20 profit, different perspectives.
Markup is used in purchasing and wholesale pricing (based on cost). Margin is used in financial reporting and retail (based on price). Confusing them leads to pricing errors. For a 50% margin, you need a 100% markup.
Margin = Markup / (1 + Markup). Example: 25% markup β 0.25/1.25 = 20% margin. Reverse: Markup = Margin / (1 - Margin). 20% margin β 0.2/0.8 = 25% markup.
E-commerce pricing, wholesale/retail, restaurant cost calculation, service pricing, import/export, and manufacturing cost analysis.
Results are displayed to 2 decimal places for commercial use. Precision meets standard business requirements.
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