Configure Inputs

₹100
₹
₹0₹1.00 Cr
₹150
₹
₹0₹1.00 Cr

Key Difference

Margin is based on Revenue (Sales Price), while Markup is based on Cost. A 50% Markup equals a 33.3% Margin.

Results

Gross Profit

₹50

Margin

33.33%

(Profit ÷ Revenue)

Markup

50.00%

(Profit ÷ Cost)

Margin33.3%

Deep Dive & FAQ

Margin vs Markup Explained

Margin and Markup are both profitability metrics, but they use different denominators:

Profit Margin

Margin = (Profit ÷ Revenue) × 100

Tells you what percentage of your sales is pure profit.

Markup

Markup = (Profit ÷ Cost) × 100

Tells you how much you've marked up the cost to set your selling price.

Example:

If you buy an item for $100 and sell it for $150:

  • Profit = $50
  • Margin = $50 ÷ $150 = 33.3%
  • Markup = $50 ÷ $100 = 50%