What is the difference between margin and markup?

Margin is calculated on the selling price, markup on the cost. A cost of VND 80,000 with a 30% margin gives a selling price of about VND 114,286, while a 30% markup gives only VND 104,000.

Why is the selling price rounded up?

Odd prices like VND 114,286 are hard to list. The tool rounds up to the multiple you choose (for example VND 1,000) so you never sell below your target margin, then recalculates the actual margin.

Tax is added on the rounded selling price to give the tax-inclusive list price. Choose no tax if your price is already the final price.

Selling price from cost and margin

Quick answer

The selling price for a target margin is cost divided by one minus the margin. The selling price for a markup is cost times one plus that percentage. The two methods give different results, so pick the right one. The tool rounds up to the multiple you choose and shows the actual gross profit.

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Quick FAQ

What is the difference between margin and markup?: Margin is calculated on the selling price, markup on the cost. A cost of VND 80,000 with a 30% margin gives a selling price of about VND 114,286, while a 30% markup gives only VND 104,000.
Why is the selling price rounded up?: Odd prices like VND 114,286 are hard to list. The tool rounds up to the multiple you choose (for example VND 1,000) so you never sell below your target margin, then recalculates the actual margin.
How is VAT added?: Tax is added on the rounded selling price to give the tax-inclusive list price. Choose no tax if your price is already the final price.

Calculate a selling price from cost and profit margin

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