Calculate Markup
Markup is calculated from cost, while margin is calculated from selling price. Do not treat the two percentages as interchangeable.
Formula: Markup (%) = (Selling Price β Cost) Γ· Cost Γ 100; Selling Price = Cost Γ (1 + Markup)
Use figures from the same reporting period and apply the definition used by the calculator. Ratios and percentages are most useful when the underlying accounting or advertising figures are comparable.
Recalculate the ratio or percentage from the displayed figures and confirm that the same reporting period and definitions were used.