Guides · Margin
Margin vs markup
Both start from cost and profit. They divide by different bases.
Identities
- Profit = sell − cost
- Margin = profit ÷ sell
- Markup = profit ÷ cost
- Sell from margin = cost ÷ (1 − margin)
- Sell from markup = cost × (1 + markup)
Same cost, different percent
Cost $75, 25% margin → sell $100, profit $25, markup 33.33%. Cost $75, 25% markup → sell $93.75, profit $18.75, margin 20%. CalcKit always shows both percents once cost and sell are known.
Why 100% margin fails
At 100% margin, 1 − margin is 0. There is no finite sell price that is entirely profit. Markup has no such ceiling: 100% markup is simply double the cost.
These identities ignore tax and accounting policy. Use the margin / markup calculator.