Overview

Markup is the amount by which a price is increased, while margin is revenue minus the cost of goods sold. Users must understand the difference between these two calculations and converting between them when using Work 365.

A markup calculation is applied as: {Price}* (1+{Markup Percentage}/100)

With this math, a 10% markup would be {Price}*1.1

A margin calculation starting from a cost price would be: {Cost}/(100-{Margin Percentage}/100)

Examples

Using a cost price of $50.00, we will apply a 10% markup and a 10% margin to see the difference

Markup = 50.00 * 1.1 = $55.00

Margin = 50.00 / .9 = $55.55

Work 365 Pricing Strategies

Work 365 Pricing Strategies always use the markup calculation. This means that if we would like to create a Pricing Strategy that always applies a specific margin percentage to the cost price, we need to know the corresponding markup percentage for that margin. Below is a list of common margins and their markup percentage.

Margin to Markup Conversion Table