Which should I use, margin or markup?

Retailers usually think in margin (share of the sale price); markup is common when pricing up from cost. This shows both.

Profit Margin Calculator

Enter your cost and selling price to see gross profit, profit margin and markup.

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They're easy to confuse. Margin is profit as a share of the selling price; markup is profit as a share of the cost.

Profit = Price − Cost · Margin % = Profit ÷ Price × 100 · Markup % = Profit ÷ Cost × 100

Cost $80, price $100 → $20 profit, 20% margin, 25% markup.

Which should I use, margin or markup?: Retailers usually think in margin (share of the sale price); markup is common when pricing up from cost. This shows both.