Formula and example
How it is calculated
Margin = (selling price − cost) / selling price × 100; markup = (selling price − cost) / cost × 100
Worked example
A €10 purchase cost and €15 selling price leave €5: a 33.33% margin and a 50% markup.
Things to check
- Use prices on the same tax basis. The difference between purchase and selling price does not yet account for other costs.
- Use one currency consistently. Examples use euros; the calculation works with any currency.