“A 50% markup and a 50% margin mean the same thing.”
Usage Entry 1113 / 1350 60-second read
Markup vs. Margin
Increase over cost versus profit as a share of selling price.
The comparisoni
“A 50% markup (of cost) is not the same as a 50% margin (of price) — a 50% markup is only a 33% margin.”
The ruleii
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MARKUP = over cost. MARGIN = of price.
MARKUP is the amount added to the cost to set the price — expressed as a percentage of cost. MARGIN is the profit as a percentage of the selling price. They always differ unless both are 0% or 100%.
Memory aidiii
Remember it like this
Markup measured on cost. Margin on price.