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What is the difference between Margin & Mark up?! How to calculate both?!

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Question added by Mohammad Al Hallaq , Director - Commercial & Finance , Global Style Technology L.L.C
Date Posted: 2014/08/01
omar almousa
by omar almousa , Special office , Office of the Mashhor Aedeibat of Accounting and Auditing

 

 

M  =  GP ( Rev - COGS ) / Rev

 

 

 

M.k  =   (GS.REV  -  CoS)  /  CoS

Margin refers to the difference between Gross Sales Revenues and Cost of Sales Divided by Gross Sales Revenue expressed normally in percentage.

 

Margin = (Gross Sales Revenue - Cost of Sales) / Gross Sales Revenue x100

 

Whereas Mark-up is arrived at by dividing differenc of Gross Sales and Cost of Sales by Cost of Sales, expressed normally percentage

 

Mark-up = (Gross Sales Revenues - Cost of Sales) / Cost of Sales x100 

 

 

Muath Khalil
by Muath Khalil , Financial Manager , Ketab Technologies Co

 Agree With Mohammad asnswer Magin to profit out of the sales price and markup addition amount to the cost and tthe you can claculate it as per the formulas in Mohammad answer 

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Marginis sales minus the cost of goods sold.

 

Markup is the amount by which the cost of a product is increased in order to derive the selling price.

 

Margin= Gross profit (Revenue – Cost of goods sold) / Revenue

 

Markup= (Gross Sales Revenues - Cost of Sales) / Cost of Sales

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

i with  answer Mr Mohammed Ahmad

Aatif Khan
by Aatif Khan , Manager Compliance & Reconciliation , Kings Real Estate

In Amount terms, margin and Markup are the same. However these are measured as a percentage.

 

Take the following Example.

 

Say cost is $4 and Profit is $1

 

Markup would be1/4 or25%.

However Margin is1/(4+1)=1/5 or20%.

 

In my experience Margin is more useful for sales reports while Markup is used by accounting professionals.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

How can calculatethe margin available The margin isthe amount of money in your account balance requiredto openthe process of trading.Margin isa simple calculation toestablishthe current market priceagainst the U.S. dollarand the volume oftrading isdesirableandthe level ofleveragethatwas chosenwhen you openyour account.Programtrading isnot going toallowyou to opena business processifyou do not haveenough creditavailable margin. Available marginreferred toin theprogramtradingMeta Trader4. To calculatethe margin requiredto opena business process, please followthe calculationof the following: (* The size of the marketprice ofthe dealership) \\leverage=margin required

IRPHAN GHANI
by IRPHAN GHANI , Senior Management , A

Very well explained by Mr. Muhammad Ahmad.

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