[Glossary](https://useratio.app/glossary) › Money and tax

# Margin

Profit as a share of the selling price.

If you buy for 80 and sell for 100, you keep 20, and 20 is 20% of 100. That is a 20% margin. Margin can never reach 100%.

To work backwards from a cost and a margin to a selling price, add the margin to the cost with “+ 25% margin”.

## In Ratio

| You type | Ratio shows |
| --- | --- |
| `margin(80, 100)` | 20% |
| `80 + 25% margin` | 106.6667 |

## Related

[Markup](https://useratio.app/glossary/markup) · [Percentage calculator](https://useratio.app/percentage-calculator) · [All terms](https://useratio.app/glossary)

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Source: https://useratio.app/glossary/margin