Use the denominator to identify the percentage
Markup divides the amount above cost by cost. Margin divides that amount by selling price. On $10 cost and a $15 price, the $5 difference is a 50% markup but a 33.33% margin. These percentages describe the same transaction from different denominators; entering one in a field intended for the other changes the answer.
Build the requested price correctly
For a 30% markup on $10, price is $10 × 1.30 = $13. For a 30% margin, price is $10 ÷ 0.70 = $14.2857, rounded to $14.29. Check the latter by subtracting cost and dividing by the unrounded price: ($14.2857 − $10) ÷ $14.2857 = 30%.
Allow for percentage fees
Suppose pre-fee variable cost is $10, the fee is 3% of net selling price, and the target contribution margin is 30%. Price is $10 ÷ (1 − 0.03 − 0.30) = $14.9254, about $14.93. The fee at that price is about $0.45. Adding 3% to a fee-free target does not exactly recover a fee charged on the resulting selling price.
Interpret the result as a contribution target
This margin is only as complete as the cost inputs. If rent, management, or other overhead is excluded, the result is not net profit. The fee and margin percentages must sum to less than 100% for a positive finite target. After rounding a menu price, recalculate its actual contribution instead of assuming the target percentage is unchanged.
Use your own operating data
Supplier prices, yields, labor rates, and channel fees change. KitchenMargin treats them as editable inputs rather than universal facts.