Understanding The Difference Between Profit Margin and Markup
Trying to Figure it out   Let’s explain in simple terms.    Your
markup was then 100%.    As you can see in the examples given
above, the only difference in the equations are in red (dividing
by the cost or by the selling price).  Profit” is the difference
between what you sell it for and what you paid for it. “Margin”
simple means you turn that into a percentage of the selling
price. You do this so you can compare different items easily. So
the difference is that markup is your profit as a percentage of
the cost price and profit margin is your profit as a percentage
of your selling price.  When would you use the terms?  When you
are deciding how much you want to make on the item and
determining the price in which the goods should be sold, you
would use markup. You would know it costs you $50 and if you
want to double your money you would use a markup of 100%. Of
course, you could just double the $50 as well and get to the
same price. When you are