Margin and markup are easy to mix up. Margin is your profit as a percentage of the sale price; markup is the same profit as a percentage of the cost. A 50 percent markup is only a 33 percent margin. Enter your cost and price to see profit, margin and markup at a glance so you price with confidence.
Price for profit
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Business accounting book
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Frequently asked questions
What is the difference between margin and markup?
Both measure profit, but against different bases: margin divides profit by the sale price, markup divides it by the cost. Markup is always the larger percentage.
What margin should I aim for?
It varies widely by industry — retail often runs on tight margins while services can be much higher. Know your costs and your competitors.