Markup vs margin
Profit = price − cost. Markup % = profit ÷ cost × 100. Margin % = profit ÷ price × 100. A $40 cost sold at $64 is 60% markup and 37.5% margin. If you want a 40% margin, price = cost ÷ (1 − 0.40).
Common questions
Which number do retailers use?
Stores usually talk margin. Vendors and trades often talk markup. Ask which one they mean.
Can margin be 100%?
Only if cost is 0. A 50% margin means half the price is profit.