Mark-up vs margin calculator
Margin on the selling price
33.33% margin
- Selling price
- £30
- Mark-up
- 50%
- Margin
- 33.33%
Working
- Profit per item = selling price − cost = £30 − £20 = £10.
- Mark-up = profit ÷ cost × 100 = £10 ÷ £20 × 100 = 50%.
- Margin = profit ÷ selling price × 100 = £10 ÷ £30 × 100 = 33.33%.
Your result
33.33% margin. A £20 cost sold at £30 makes £10 profit: a 50% mark-up on cost and a 33.33% margin on price. The margin is always the smaller figure.
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Your mock plan, in three taps
The same £10 profit on a £20 cost and a £30 price is a 50% mark-up (profit ÷ cost) but a 33.33% margin (profit ÷ price).
Questions people ask
What is the difference between mark-up and margin?
Both start from the same profit per item. Mark-up divides it by the cost; margin divides it by the selling price. A £20 item sold for £30 makes £10: a 50% mark-up but a 33.33% margin.
How do you convert mark-up to margin?
Margin = mark-up ÷ (100 + mark-up) × 100. A 50% mark-up is 50 ÷ 150 × 100 = 33.33% margin.
How do you convert margin to mark-up?
Mark-up = margin ÷ (100 − margin) × 100. A 25% margin needs a mark-up of 25 ÷ 75 × 100 = 33.33%.
Is mark-up on the GCSE Business specification?
Not by name. AQA lists cost-plus pricing, which sets the price by adding a mark-up to the cost, and both boards ask for gross and net profit margins on a business's revenue.
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How we work this out
What it does
Enter a cost with a selling price, a mark-up or a margin to see the other two side by side, with every step shown.
Mark-up and margin on one item: profit per item as a share of its cost (mark-up) and of its selling price (margin). Cost-plus pricing in AQA 8132 3.5.4 adds a mark-up to the cost.
Method
- Profit per item = selling price − cost.
- Mark-up = profit ÷ cost × 100.
- Margin = profit ÷ selling price × 100.
- From a mark-up: price = cost × (1 + mark-up ÷ 100). From a margin: price = cost ÷ (1 − margin ÷ 100).