Definition
Markup calculates profit on cost (cost 100, price 150 = 50% markup); margin calculates on price (same sale = 33% margin). Teams quoting '50% margin' while applying 50% markup price products 17 points below intention.
Why it matters
This arithmetic confusion silently destroys pricing strategy - every pricing sheet should state its basis explicitly.
Formula
Margin = (Price - Cost) / Price | Markup = (Price - Cost) / Cost
All glossary terms