Markup is profit as a percentage of cost: markup = (price - cost) / cost. The selling price is cost x (1 + markup). Margin is profit as a percentage of the price: margin = (price - cost) / price. The two are often confused, but a 50% markup is only a 33.3% margin.
Example: a product costs 40 and you add a 50% markup. The price is 60, the profit is 20, and the margin is 20 / 60 = 33.3%.
Markup divides profit by cost; margin divides profit by selling price. Markup is always the larger number for the same sale. To reach a target margin, use a higher markup: a 40% margin needs a 66.7% markup.
markup = margin / (1 - margin). For a 25% margin that is 0.25 / 0.75 = 33.3%. The margin calculator works in the other direction.
No. Markup is calculated before sales tax or VAT, which are added on top of the selling price.
See also: margin calculator · discount calculator · percent change calculator