Mark-up vs Margin

Written By Alexander Hill

Here’s a common confusion worth clearing up; if a product costs $80 and is sold for $100, what is the Margin and Mark-up of the product?

Margin - is the sale price ($100) minus the cost price ($80) i.e.  $100-$80 = $20 Margin, or, as a percentage: ($100-$80)/$100 = 20% (profit/sale)

Markup - is the amount by which the cost price ($80) of a product is increased from the sale price ($100). ie ($100-$80)/$80 = 25% (profit/cost)

A useful site: Markup Calculator

Alexander Hill

Awarded the Architects Board of South Australia Prize in 2001, Alexander is a registered architect, former builder and author of Find Your Way Home.

After beginning his architectural career in Melbourne in 2002, he later gained his builder's licence to better understand how design decisions translate into cost and construction.

Through Three Hat Buildings, he now helps people understand the consequences of their building decisions before they become expensive to change.

https://www.threehatbuildings.com.au/
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