Difference between margin and markup
Margin vs markup (comparison)
Margin and markup are two different ways of looking at your profit on a sale.
They both focus on the same amount of money – the difference between your buying and selling prices. And they both express that amount as a percentage. However, margin shows it as a percentage of income while markup shows it as a percentage of costs.
Your markup is always bigger than your margin, even though they refer to exactly the same amount of money.
Markup: Tells you how much you bump up the prices of the things you sell.
Margin: Tells you what percentage of income is gross profit.
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