Glossary
Markup
Markup is the gap between selling price and cost, divided by cost. It says how much you added on top of what you paid.
What it means for a shop owner
People often mix it up with margin. Margin divides by the selling price while markup divides by the cost, so for the same sale markup is always the bigger number. Use markup when you set a price from cost, and margin when you measure profit from the sale.
A worked example
An item costs 40 and sells for 50. The gap is 10, so markup = 10 ÷ 40 = 25%, while margin = 10 ÷ 50 = 20%.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes