Markup and margin describe the same profit from opposite ends. A 100% markup is a 50% margin. Mixing them up is one of the most common pricing errors, and it always errs on the side of thinking you make more than you do.
Formula
Markup = (Price − Cost) ÷ Cost × 100; Margin = Markup ÷ (100 + Markup) × 100
Margin from cost and price, or the price you need for a target margin, with tax handled properly.
Related terms
Part of the growth marketing glossary by Shiva Sharma.