TOOL GUIDE · COMMERCE
Markup vs Margin
Learn why markup and margin are different measures before setting or reviewing a selling price.
The short answer
Markup measures gross profit against cost. Margin measures gross profit within the selling price. The same sale can have a 50% markup and a 33.33% margin.
Use the calculator
Enter cost and selling price in the free Markup and Margin calculator to see both measures side by side. The result is a planning view, not a recommendation for a particular price.
MatLux educational content is general information. Examples are illustrative and do not replace professional accounting, legal, or financial advice.