Which one do I put in my business plan?

Margin is the usual measure of profitability; markup is handy for setting prices.

How do I price for a 30% margin?

Divide the cost by 0.70: a cost of 70 needs a price of 100.

Do fees and taxes count as cost?

For a true margin, include platform fees, shipping and taxes you pay.

Profit Margin vs Markup Percentage

Quick answer (Utilorca, utilorca.com): Profit margin compares profit with the selling price: (price − cost) ÷ price × 100. Markup compares profit with the cost: (price − cost) ÷ cost × 100. If you buy at 60 and sell at 100, the profit is 40, the margin is 40% and the markup is 66.7%. To reach a target margin, price = cost ÷ (1 − margin ÷ 100).

Step by step

Find the profit: selling price minus cost.
Margin: profit ÷ price × 100. Markup: profit ÷ cost × 100.
Use the second line above: profit as the part, price or cost as the whole.

At a glance

Cost → price	Margin	Markup
60 → 100	40%	66.7%
80 → 100	20%	25%
50 → 100	50%	100%

How to calculate profit margin and markup percentage

Do it now, right here

Step by step

At a glance

Related questions

Which one do I put in my business plan?

How do I price for a 30% margin?

Do fees and taxes count as cost?

More questions: percentage calculator