Currency of the amounts, without automatic conversion.
02
Your result
Simulation using your parameters
Gross margin = (SP − CP) / SP × 100. Markup = (SP − CP) / CP × 100.
- Markup
- 66.67%
- Absolute margin
- £40.00
Local calculation
03 / Understand the calculation
Margin vs Markup: Key Differences Explained
Two Calculations, Two Perspectives
- Gross margin is calculated on the selling price: (SP - CP) / SP x 100. It shows what percentage of revenue is profit.
- Markup is calculated on the cost price: (SP - CP) / CP x 100. It shows how much you add to cost to set your price.
Margin to Markup Conversion Table
| Margin | Equivalent markup |
|---|
| 20% | 25% |
| 33% | 50% |
| 40% | 66.7% |
| 50% | 100% |
Common Margins by Industry
- Retail: 25 - 50% markup
- Restaurants: 60 - 70% margin on drinks, 25 - 35% on food
- Consulting and services: 50 - 80% gross margin
- Grocery and supermarkets: 15 - 25% gross margin