Margin vs. Markup: Understanding the Difference
Many new entrepreneurs confuse Margin with Markup, leading to disastrous pricing mistakes.
Markup shows how much more your selling price is than the amount the item costs you. If you buy a product for $50 and sell it for $100, your markup is 100%.
Margin shows the percentage of the selling price that is profit. In that same example, your $50 profit on a $100 sale means your profit margin is 50%.
The Toolzeniq Profit Margin Calculator instantly computes both metrics simultaneously, ensuring your ecommerce store or retail business prices products perfectly to cover operating expenses and achieve profitability.