Calcolatore di margine

Calcolatore di margine

Gross Profit Margin vs. Markup

Businesses frequently confuse markup and margin. Margin is the ratio of profit to selling price, whereas markup is the ratio of profit to cost price.

Business Formulas

  • Gross Margin %: (Revenue - Cost) / Revenue × 100
  • Markup %: (Revenue - Cost) / Cost × 100

Frequently Asked Questions

Why is gross margin always lower than markup?

Because margin is calculated against a larger denominator (the retail price), whereas markup is calculated against the cost price.

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