Markup vs Margin: feature by feature
| Markup | Margin | |
|---|---|---|
| Based on | Cost price | Selling price |
| Formula | (Selling - Cost) / Cost × 100 | (Selling - Cost) / Selling × 100 |
| Example: buy at 100, sell at 150 | 50% markup | 33% margin |
| Used for | Setting prices from cost up | Reporting profit as % of revenue |
| Which is higher | Always higher than margin on the same sale | Always lower than markup on the same sale |
How to choose
Choose Markup if
- You know your cost and want to set a price (add markup to cost to get the selling price)
Choose Margin if
- You want to report, compare or benchmark how profitable a product is (industry benchmarks are usually in margin)
More detail
The confusion causes real pricing errors. A 50% markup sounds like a 50% margin, but it is actually 33%. Applying the wrong formula to a benchmark leads to underpricing.
The calculator converts between the two instantly, so you can price using markup and report using margin without mental arithmetic.
Free tools for this
Frequently asked questions
Is 30% markup the same as 30% margin?
No. 30% markup on a KES 100 cost gives a KES 130 price and a 23% margin. 30% margin on a KES 100 cost gives a KES 143 price.
Veira combines POS, M-Pesa, KRA eTIMS and inventory in one app with a free terminal. Book a demo and see how it fits your trade.