Find your margin and markup, or the price you need for a target margin or markup.
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.33% |
| 100% | 50% |
Cost 1,000 and price 1,500: profit is 500, margin is 500 ÷ 1,500 = 33.33%, and markup is 500 ÷ 1,000 = 50%.
For a 25% margin on a cost of 1,000, the price is 1,000 ÷ (1 − 0.25) = 1,333.33. For a 40% markup, the price is 1,000 × 1.40 = 1,400.
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Buying at 1,000 and selling at 1,500 is a 33.33% margin but a 50% markup.
Divide the cost by 0.75. A cost of 1,000 needs a price of 1,333.33.
No. Margin can approach 100% but never reach it. Markup can be any size.