Margin vs markup: the same profit on two different bases
Learn why margin divides profit by selling price while markup divides it by cost, with exact conversion formulas.
Read guideUnderstand both percentage bases
Three guides explain the two percentage bases, target-price formula, and honest boundary of a gross-margin calculation.
Learn why margin divides profit by selling price while markup divides it by cost, with exact conversion formulas.
Read guideUse price = cost ÷ (1 − margin) and understand why adding the target percentage to cost produces a different result.
Read guideDefine the direct cost used by a simple margin calculation and keep taxes, overhead, fees, and recommendations outside the formula.
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