Margin vs markup
Tue May 05 2026
To price something for a target margin, divide the buy cost by 1 - target margin.
Example:
- buy cost = 100
- target margin = 25%
- sale price = 100 / 0.75 = 133.33
This is margin, not markup. Markup would add 25% onto cost. Margin is profit as a share of the selling price.