Cost 100, price 125
- Input
- custo R$ 100, preço R$ 125
- Expected output
- markup 25% (1,25x), margem 20%
Profit of R$ 25.
Carregando ferramenta… / Loading tool…
markup vs margin how to calculate
In the tool, use the I want a margin mode: type the cost and the desired margin and read the price, the markup as a multiplier and as a percentage, and the profit. The Markup vs margin table sits just below the result.
Profit of R$ 25.
Not a 30% margin.
100 / 0.70.
60 / 0.60.
50 / (100 + 50).
Markup is profit divided by cost; margin is profit divided by selling price. With a R$ 100 cost and a R$ 125 price, profit is R$ 25: a 25% markup and a 20% margin. The conversion is margin = markup / (1 + markup). A 50% markup is a 33.33% margin, and a 50% margin needs a 100% markup.
No. A 100% markup doubles the price over cost and gives a 50% margin. A 100% margin is impossible, because it would require zero cost.
Think in margin to decide how much is left from each sale and in markup as the practical multiplier over cost. The tool shows both, and margin is the one to compare with taxes, commission and card fees.
No. Gross margin considers only the cost of goods; the net margin used here also deducts taxes, commission, fixed fees, seller-paid shipping and card fees. It is the one that shows what is really left.
Divide the margin by 1 minus the margin. A 20% margin becomes 0.20 / 0.80 = 25% markup. For the multiplier, add 1: 1.25x.
Unit cost: R$57.00
Simples effective rate: 5.32% of the price (bracket 2, nominal 7.3%).
This price is right at the 20% margin limit; you can only discount up to 21.12% before profit reaches zero.
A 33.91% markup on cost is the same profit as a 20% margin on price.
| Item | R$ | % |
|---|---|---|
| Cost of goods | R$57.00 | 74.68% |
| Seller-paid shipping | R$0.00 | 0% |
| Tax | R$4.06 | 5.32% |
| Channel commission | R$0.00 | 0% |
| Fixed fee per item | R$0.00 | 0% |
| Card | R$0.00 | 0% |
| Ads and other | R$0.00 | 0% |
| Profit | R$15.27 | 20% |
| Channel | Price | Markup | Margin | Profit | Break-even |
|---|---|---|---|---|---|
| R$76.33 | 1.34x | 20% | R$15.27 | R$60.21 | |
| R$93.94 | 1.65x | 20% | R$18.79 | R$70.65 | |
| R$100.57 | 1.76x | 20% | R$20.12 | R$74.34 | |
| R$126.90 | 2.23x | 20% | R$25.38 | R$90.49 | |
| R$98.87 | 1.73x | 20.01% | R$19.78 | R$74.05 | |
| R$97.14 | 1.70x | 20% | R$19.43 | R$72.45 |
Marketplace fees change without notice. Values checked or used as reference on 10/2026; those flagged as unverified are starting points: confirm them in the seller center.
Markup is profit over cost; margin is profit over price. Margin = markup / (1 + markup).
| Markup | Multiplier | Margin |
|---|---|---|
| 10% | 1.10x | 9.09% |
| 25% | 1.25x | 20% |
| 50% | 1.50x | 33.33% |
| 100% | 2.00x | 50% |
| 150% | 2.50x | 60% |
| 200% | 3.00x | 66.67% |
| 300% | 4.00x | 75% |