What is the Difference Between Markup and Margin?

It is amazing how one simply formula can be so confusing to the average business owner. The formula is markup. It is defined as the dollar amount or percentage of the cost of the item added to the item to equal its sales price. Most people confuse this simple formula with margin. So to make this as simple as possible, markup is a function of cost and margin is a function of sales.

What is the Difference between Markup and Margin?

Markup Calculator

It is amazing how one simple formula can be so confusing to the average business owner. The formula is markup. It is defined as the dollar amount or percentage of the cost of the item added to the item to equal its sales price. Many entrepreneurs especially those in retail confuse this simple formula with margin.

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