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Free printable

Profit Margin vs Markup Cheat Sheet

Keep the cost-based markup and revenue-based margin formulas beside four printed pricing examples.

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Five columns in the printable cheat sheet

The PDF shows cost, selling price, gross profit, margin and markup for four examples. It includes the $50-to-$75 and $50-to-$100 cases, making the effect of a price change visible without changing the cost.

CostSelling priceGross profitMarginMarkup
$50$75$2533.3%50%
$50$100$5050%100%
$80$120$4033.3%50%
$100$150$5033.3%50%

Use consistent cost and price definitions when copying your own figures beside the examples. If GST applies, compare amounts on the same GST basis. The printed gross-profit calculation does not automatically allow for every operating expense.

Compare two prices against a $50 cost

At a $100 price, gross profit is $50, margin is 50% and markup is 100%. At a $75 price, gross profit falls to $25, margin is about 33.3% and markup is 50%. Reducing the price by 25% has halved the gross profit in this example.

Use the sheet during a price review

The one-page PDF is a static comparison, so it will not recalculate a promotion or include payment fees for you. Use the margin or markup calculator for different inputs, and the product-pricing tool when more selling costs need to be modelled.

Download Profit Margin vs Markup Cheat Sheet

PDF · 1 page · Free

Download Profit Margin vs Markup Cheat Sheet PDF

Frequently asked questions

Does this sheet show the profit remaining after all business costs?

No. Its profit column subtracts the stated cost from price. Fees, advertising, overheads and other excluded costs may still reduce profit.

Why is the markup larger than the margin?

For a positive profit, the cost denominator is smaller than the selling-price denominator. The same profit therefore represents a larger percentage of cost.

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