KNOW THE MATH
How it works
Margin and markup use different denominators and should not be confused. Enter revenue and direct cost in the same currency. Taxes, fees and overhead are reflected only if you include them in the relevant input.
Formula
Gross profit = revenue − cost. Margin = gross profit ÷ revenue × 100%. Markup = gross profit ÷ cost × 100%.
Worked example
A product sold for 150 with a cost of 90 has 60 gross profit, 40% margin and 66.67% markup.