Margin vs markup

Margin vs markup

A 50% markup is a 33.3% margin. They’re not the same number — here they are side by side.

Margin 40%
profit ÷ price
Markup 66.67%
profit ÷ cost
Cost 60.00 · Price 100.00 · Profit 40.00
margin = 40.00 ÷ 100.00 · markup = 40.00 ÷ 60.00