Understanding Margin vs Markup
Our Margin & Markup Calculator helps business owners and sales professionals instantly determine profitability. While they sound similar, margin and markup are different concepts.
Gross Margin: The percentage of revenue you keep as gross profit. Formula: (Revenue - Cost) ÷ Revenue × 100.
Markup: The percentage added to the cost to get the selling price. Formula: (Revenue - Cost) ÷ Cost × 100.
Tip: A 100% markup results in a 50% margin. Knowing the difference is critical for setting the right prices for your products.