Question 1

What is the difference between margin and markup?

Accepted Answer

Margin is profit ÷ sell price. Markup is profit ÷ cost. A 25% margin on $75 cost is a $100 sell price (markup 33.33%). A 25% markup on $75 cost is a $93.75 sell price (margin 20%).

Question 2

Why can’t I enter a 100% margin?

Accepted Answer

Sell price = cost ÷ (1 − margin). At 100% margin the denominator is 0, so there is no finite price. Markup has no such ceiling.

Question 3

Is this accounting or tax advice?

Accepted Answer

No. These are the standard margin and markup identities. They ignore VAT, sales tax, discounts, and inventory rules.

Margin / markup

Margin is not markup

FAQ

Margin / markup

Margin is not markup

FAQ

What is the difference between margin and markup?

Why can’t I enter a 100% margin?

Is this accounting or tax advice?

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