The detailed guide below is currently available in English.
Markup versus margin
Markup starts from cost: it is the percentage added on top of what you paid. Margin starts from price: it is the percentage of the final price that is profit. Because price is always bigger than cost, the same dollars produce a bigger-looking markup — a 50% markup on a $100 item is a $50 profit, but that is 33.3% of the $150 price. Mixing the two up is the classic pricing mistake: “50% margin” prices an item at double cost, while “50% markup” leaves margin well below half.
Setting a markup that works
A markup has to cover more than the item itself: rent, labor, spoilage, returns, card fees, and the items you never sell all come out of the same pool of gross profit. Retail markups commonly run 50–100%, while groceries accept far less and jewelry expects far more. The useful check is whether margin × realistic volume covers your fixed costs — the break-even calculator turns that question into a number of units.
Contexto local: Portugal
Dados locais essenciais para cálculos financeiros em Portugal — diferem dos valores padrão dos EUA:
- IVA: Taxa normal 23 % (continente), intermédia 13 %, reduzida 6 %. Os preços ao consumidor já a incluem.
- IRS (2025): Taxas progressivas de 13,25 % a 48 %, mais taxa solidária e majoração ACR (Açores e Madeira têm deduções próprias).
- Segurança Social: Taxa contributiva global 34,75 % — 11 % a cargo do trabalhador sobre o bruto, 23,75 % da entidade patronal.
- Salário mínimo 2025: 870 € por mês, pagos em 14 prestações (12 + subsídios de férias e de Natal).
- Gorjeta: Não é obrigatória; 5–10 % em restaurantes é bem-visto.
Atualizado: outubro 2026 · valores de 2025, fontes oficiais acima.
Perguntas frequentes
How do I convert markup to margin?
Divide the markup by itself plus 100. A 50% markup becomes 50 ÷ 150 = 33.3% margin; a 100% markup is a 50% margin.
Can markup be negative?
Yes — clearance pricing often sells below cost. This calculator allows any markup above −100%, which is the point where the price itself would turn negative.
Does the revenue figure include taxes?
No. Revenue here is price × units before sales tax; add your local sales tax separately at the register or invoice level.