Glossary › Money and tax

Markup

Profit as a share of the cost.

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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

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markup(80, 100)25%
margin(80, 100)20%

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