How margin is calculated
Profit = price − cost; margin = profit / price × 100; markup = profit / cost × 100. VAT inclusion must be consistent.
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See profit, margin and markup on cost.
Profit = revenue − cost. Margin% = profit / revenue × 100.
Cost 80, revenue 100 → profit 20, margin 20%.
Compute gross profit and margin from cost and selling price, and separate margin from markup. Accounting profit needs full expenses.
Profit = price − cost; margin = profit / price × 100; markup = profit / cost × 100. VAT inclusion must be consistent.
Cost inflation can squeeze margins. Equating margin with markup or ignoring overheads misleads pricing decisions.
Sources: Cost accounting basics · SME guidance
Margin is based on revenue; markup is based on cost.