What is the difference between margin and markup?
Margin uses selling price as the denominator; markup uses cost.
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An item costing $60 and selling for $100 has $40 profit, a 40% margin, and a 66.67% markup.
Profit is revenue minus cost. Margin divides profit by revenue; markup divides profit by cost.
This simple calculation excludes overhead, taxes, payment fees, returns, and other business costs.
Margin uses selling price as the denominator; markup uses cost.
Yes. When cost exceeds revenue, profit and percentages can be negative.
A percentage cannot divide by zero.