Margin vs markup
These are often confused but are NOT the same number.
Margin % = Profit ÷ Selling price × 100 | Markup % = Profit ÷ Cost × 100
Example: cost = ₹80, price = ₹100, profit = ₹20. Margin = 20/100 = 20%. Markup = 20/80 = 25%. Same dollars, different percentages.
Margin to markup conversion
| Margin | Markup |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 75% | 300% |
Markup = Margin ÷ (1 − Margin)
FAQ
Which is better to quote — margin or markup?
Depends on audience. Investors and accountants speak in margins. Retailers and wholesalers speak in markups. Just be explicit about which one you mean.
What's a healthy gross margin?
Varies by industry: grocery retail 2-5%, restaurants 60-70%, software 70-90%, manufacturing 25-40%. Compare against your specific industry benchmark.