Difference between revisions of "Margin and Markup"
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If we have BUY and SELL prices, then: | If we have BUY and SELL prices, then: | ||
PROFIT = SELL - BUY | PROFIT = SELL - BUY. | ||
* Margin = PROFIT / SELL x 100 | * Margin = PROFIT / SELL x 100. | ||
* Markup = SELL / BUY x 100 - 100 | * Markup = SELL / BUY x 100 - 100. | ||
In other words: | In other words: | ||
Revision as of 13:56, 26 May 2010
If we have BUY and SELL prices, then:
PROFIT = SELL - BUY.
- Margin = PROFIT / SELL x 100.
- Markup = SELL / BUY x 100 - 100.
In other words:
- Margin = PROFIT's part in the SELL price, or the part profit makes up in the sell price.
- Markup = the increase from the BUY price to the SELL price, or how much the SELL price has increased from the BUY price, in percent.
