Markup builds from cost
Markup is intuitive when taking a known cost and adding an amount on top.
Margin evaluates sales
Margin shows what percentage of revenue remains after direct cost and is often clearer for profitability analysis.
Label percentages clearly
Never write only “30%” in a pricing model. Specify whether it is markup, margin, commission, discount or another measure.
ProfitMaths guides provide general educational information, not personalised accounting, tax, legal or financial advice.