Updated
Short answer: A $40 cost and a $100 price is a 60% margin and a 150% markup. They are not the same percent.
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Profit $60.00. Margin = profit / price. Markup = profit / cost. Price for a 60.00% margin after a 0.00% platform fee: $100.00.
$100.00
Margin = (price − platform fee − cost) / price. Markup = (price − platform fee − cost) / cost. To hit a margin after a platform fee, price = cost / (1 − margin − fee). A margin plus fee of 100% or more has no price.
| Margin | Markup |
|---|---|
| 20.00% | 25.00% |
| 25.00% | 33.33% |
| 40.00% | 66.67% |
| 50.00% | 100.00% |
| 60.00% | 150.00% |
Markup = margin / (1 − margin). A 60.00% margin is a 150.00% markup, the same pair as the opening $40 cost and $100 price.
| Cost | Margin | Platform fee | Price |
|---|---|---|---|
| $20.00 | 40.00% | 10.00% | $40.00 |
Price = cost / (1 − margin − fee). A $20 cost, a 40% margin, and a 10% platform fee is $40.00.
Margin is profit divided by the selling price. Markup is profit divided by the cost. A $40 cost and a $100 price is a 60% margin and a 150% markup.
Price = cost divided by (1 minus the margin as a decimal). A 60% margin on a $40 cost is $100. A margin of 100% or more has no price.