Margin and markup calculator

Margin and markup are different numbers and they are confused constantly, usually in the direction that flatters the business. This shows both from the same two figures. No tax rules are involved and nothing you type leaves your browser.

Which one you mean matters

Markup is profit measured against what you paid. Margin is profit measured against what the customer paid. A fifty per cent markup is a thirty-three per cent margin, and a business that sets prices by markup while budgeting by margin will find the money does not arrive where it was expected. Suppliers and wholesalers usually quote markup; accountants and banks usually mean margin.

Related: pricing and margin and the VAT calculator.