Margin Calculator

Margin divides profit by the selling price; markup divides it by cost. A $60 cost sold at $100 is a 40% margin but a 66.7% markup. Mixing them up misprices products — a '50% markup' yields only a 33% margin.

To hit a target margin, divide cost by (1 − margin): a $60 cost priced for a 40% margin is 60 ÷ 0.6 = $100. Pricing by adding a percentage to cost (markup) systematically undershoots the margin you named.