Simply put, the difference between margin and markup is that:
- margin is the ratio of profit to selling price
- markup is the ratio of profit to costs associated with the sold goods
In other words, margin represents profit as a percentage calculated from the selling price, while markup is the value added to our costs associated with the sold goods.
Margin calculator
A simple practical tool that helps calculate sales margin. Allows for quick determination of the difference between selling price and cost, expressed as a percentage of cost. Essential for entrepreneurs to determine product profitability.
Provide the values below to calculate the percentage and value margin.
Markup calculator
A practical calculator for determining price markup, which is the amount added to the product’s cost to arrive at the selling price. Helps sellers and entrepreneurs set appropriate selling prices based on costs and desired profit.
Provide the values below to calculate the percentage and value markup.