In business, the markup is the price spread between the cost to produce a good or service and its selling price. In order to ensure a profit and recover the costs to create a product or service, producers must add a markup to their total costs.

In business, margins are the differences between the price of a good or service and the amount of money required to produce it. In financial accounting, margins refer to the same difference between revenue and cost in various stages.

The following worksheet is designed to help in setting specific margins on inventory items and promotions. Click here to download the worksheet. On the top of the worksheet, click Enabled Editing. Enter a cost and retail price, and the worksheet figures out the markup and margin percentages.

How to determine Markup and Margin worksheet
Figure 1: How to determine Markup and Margin worksheet

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Printed on: 5/24/24