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hello this is Thomas from inflow again we make software that helps small businesses take control of the inventory in our previous video we showed you how to calculate markup and margin as long as you had your cost and price here those formulas one more time but if you only know the market percentage is there a formula to convert markup directly into margin thats a rhetorical question because those formulas are exactly what this quick video is about its markup equals margin divided by 1 minus margin and margin is very similar its markup divided by 1 plus markup so lets try this out with some sample numbers say youre selling jeans but theyre pre ripped jeans which adds a lot to the price because someone has already damaged them for your customers each time you sell a pair of these jeans 20% of the sale price covers the cost which means the other 80% is profit wed express this as 0.8 and the formula but you can always mentally multiply that by 100 to see it as a percentage if we ru