Currency
Selling price
£80.00
Profit
£30.00
Margin
37.5%
A 60% markup is a 37.5% margin: markup is profit over cost, margin is profit over price.
CostProfit
Markup on a £50 cost
| Markup | Price | Profit | Margin |
|---|---|---|---|
| 20% | £60.00 | £10.00 | 16.7% |
| 25% | £62.50 | £12.50 | 20.0% |
| 50% | £75.00 | £25.00 | 33.3% |
| 60% | £80.00 | £30.00 | 37.5% |
| 100% | £100.00 | £50.00 | 50.0% |
The sums
| Price | cost × (1 + markup) |
|---|---|
| Markup | (price − cost) ÷ cost |
| Margin | (price − cost) ÷ price |
Quick answers
How do I add a 60% markup to a cost?
Multiply the cost by 1.6. £50 × 1.6 = £80, which leaves £30 profit on each sale.
What is the difference between markup and margin?
Markup measures profit against cost, margin against price. A 60% markup on £50 gives £30 profit, which is 37.5% of the £80 price.
How do I work out the markup from my prices?
Take the cost away from the price and divide by the cost. (£80 − £50) ÷ £50 = 60%.
No tax rates are involved: markup and margin are plain arithmetic.