Enter your cost price and selling price to instantly see profit amount, profit margin, and markup percentage, useful for pricing products correctly and understanding the actual difference between margin and markup.
Both describe profitability from the same sale, but they're calculated against different bases. Margin divides profit by the selling price; markup divides profit by the cost price. Because the denominators differ, the two numbers are never equal for a given sale, which surprises people the first time they see both side by side.
Setting a retail price for a new product, or checking whether a recent price change actually improved profitability the way it was supposed to.
Margin is profit divided by selling price. Markup is profit divided by cost price. The two numbers are always different, and both get shown since businesses use either depending on context.
Markup is usually used to calculate a selling price from cost. Margin is usually used to evaluate profitability after a sale.
No, it's a straightforward cost-vs-selling-price calculation. Factor in taxes or shipping through your cost price if you want them reflected.
It varies a lot by industry. Retail and food service often run thin, single digits to teens, while software can run much higher. Compare against your specific industry's typical range.