⚖️ Margin vs. Markup
Compare your profit metrics to ensure your business pricing is sustainable.
Enter cost and selling price to see the comparison.
The Vital Difference
Understanding the formulas helps you avoid pricing errors:
Markup
(Profit / Cost) × 100
Margin
(Profit / Revenue) × 100
If you buy an item for $100 and sell it for $125, your markup is 25% but your margin is only 20%. This distinction is critical because business expenses—like rent, salaries, and shipping—are usually calculated as a percentage of your total revenue (margin), not your cost.