Business Percentage Calculations — Markup, Margin, and More

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Overview

Confusing markup and margin is one of the most common business calculation errors. Here is the complete guide to getting both right.

Markup = (Profit ÷ Cost) × 100 | Margin = (Profit ÷ Revenue) × 100

Standard formula used by professionals worldwide

Cost 100, sell 150 → Profit 50 | Markup = 50% | Margin = 33.3% — not the same!

Accuracy: Results are as accurate as the inputs you provide
Units: Always use consistent units throughout your calculation
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You need 100% markup. Sell at double cost price to achieve 50% margin.

Margin for pricing against competitors. Markup for setting prices from costs.

Gross: revenue minus direct costs. Net: after all expenses including overheads and tax.

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