How to use it
- Type what one item costs you.
- Pick “The markup I want” and type a percentage, or pick “My selling price” and type your price.
- Read the selling price, your profit per item, and the markup and margin.
Markup is profit as a share of the cost. Margin is profit as a share of the selling price. A 100% markup is a 50% margin, so always check which one people mean.
Questions
What is the difference between markup and margin?
Markup is profit ÷ cost. Margin is profit ÷ price. If an item costs ₦5,000 and sells for ₦8,000, the markup is 60% and the margin is 37.5%.
What markup should I use?
Many small shops use 40% to 100% on the product cost, then check the margin still covers delivery, packaging and payment fees.
How do I turn a margin into a markup?
Markup = margin ÷ (100 − margin) × 100. A 40% margin is about a 67% markup.
