Glossary › Money and tax
Markup
Profit as a share of the cost.
Buy for 80 and sell for 100: you keep 20, and 20 is 25% of the 80 you paid. That is a 25% markup. The same sale is a 20% margin, which is why the two words are easy to mix up.
Markup can go above 100%; margin cannot.
In Ratio
| You type | Ratio shows |
|---|---|
markup(80, 100) | 25% |
margin(80, 100) | 20% |