Markup and margin calculator
Enter what a case costs you and either the markup or the margin you want. See the sell price, the gross profit per case, and what that markup is as a margin, or the other way round.
Markup and margin are two views of the same profit.
Markup measures gross profit against cost. Margin measures it against the sell price. A case that costs $20.00 and sells for $25.00 makes $5.00: that is a 25% markup and a 20% margin. The two are linked: margin equals markup divided by one plus markup.
The difference matters when two people in the same business use different words. A rep who adds "25%" to cost and a controller who expects "25%" of the sale are four or five points apart on every case.
How the sell price is calculated
- From a markup: sell price = cost × (1 + markup ÷ 100), rounded to the cent.
- From a target margin: sell price = cost ÷ (1 − margin ÷ 100), rounded to the cent.
In APFoodz, each customer gets one price on every channel, and every order line shows its margin as it is entered.
Questions about this tool.
What is the difference between markup and margin?
Markup is gross profit divided by cost; margin is gross profit divided by the sell price. A case that costs $20.00 and sells for $25.00 has a 25% markup and a 20% margin.
Which one should I price with?
Either works if everyone uses the same one. Problems start when a rep quotes markup and the controller reports margin. Pick one and label it.
Where this math lives in the product.
See it with your own data.
A working session with your customers, your items and your route days. Thirty minutes.