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What is the difference between markup and margin, also known as profit margin?

April 26, 2017difference known margin Markup profit

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What is the difference between markup and margin, also known as profit margin?

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Markup is how much an item is increased in the selling price over the cost. The margin, or profit margin, is how much profit is made after the cost of the product is subtracted from the selling price. The easiest way to think about it is that margin is based on selling price while markup is based on cost. • Margin • The percentage margin is the percentage of the final selling price that is profit. • Markup • A markup is a percentage of the cost price added to get the selling price.