Markup vs. Margin

For those unfamiliar with accounting terms discussions of markup verses margin may feel a bit daunting.

Some people can do math in their head and easily remember numbers.  For those of you new to these terms or if is hard for you to remember what markup is needed to get the margin you need to stay profitable, here are some tools.

These are the formulas:

Markup % = Gross Profit / Cost
Margin % = Gross Profit / Price

Here is a table of examples assuming the cost of an item is $100.

Cost	Markup	Gross Profit	Price	Margin
100	20%	20	120	17%
100	25%	25	125	20%
100	30%	30	130	23%
100	35%	35	135	26%
100	40%	40	140	29%
100	45%	45	145	31%
100	50%	50	150	33%
100	55%	55	155	35%
100	60%	60	160	38%

Here is a link with examples and definitions.