What is Margin vs. Markup?

Margin shows profit as a share of revenue; markup shows it relative to cost. 100% markup = 50% margin. Confusing them leads to wrong pricing and false profit pictures.

Formula

Margin (%) = Profit / Selling Price × 100 Markup (%) = Profit / Cost Price × 100

Example

A product: cost $20, sold at $50. Profit = $30. - Margin = $30 / $50 × 100 = 60% - Markup = $30 / $20 × 100 = 150% Same profit, different perspective.

Your revenue is growing — but how much do you actually keep?

Most store owners don't know. Margyn shows you — after every cost is deducted, updated daily.

Start tracking my profit

Shopify, UNAS & WooCommerce (Beta) integrations. 14 days free, no credit card required.

Related Terms

Markup

Markup shows how much more you sell a product for compared to its cost, as a percentage. It is not the same as margin — confusing the two is one of the most common mistakes.

Gross Margin

Gross margin is the difference between revenue and COGS, as a percentage. With the median e-commerce net profit at 3%, this number determines viability.

Net Margin

Net margin is the profit percentage remaining after all costs (COGS, ads, shipping, operations). The e-commerce median is just 3% — every percentage point matters.

COGS (Cost of Goods Sold)

COGS is the direct cost of products sold: purchase price + inbound shipping + duties. The landed cost is the number you actually need to know.

Back to glossary
What is Margin vs. Markup? | Margyn Glossary