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Markup vs. Margin: What’s the Difference? Explained using Excel

Margin or profit margin and markup are both accounting terms that use the same inputs - Revenue, cost, and profit, but they show different information. Both profit margin and markup use revenue and costs as part of their calculations. Revenue - Cost = Profit. The difference is margin takes the profit and divides it by Revenue or Retail price to get the margin percentage. Markup takes profit and divides it by cost to get the Markup percentage. Here is an easy example. An item costs $8, and your markup is $2 for a retail price of $10. Your markup percentage is 25%. The $2 profit is divided by the $8 cost. Your profit margin percentage is 20%. The $2 profit is divided by the $10 retail price or revenue. Margin percentage: profit / revenue, Markup percentage: profit / cost Chapters: 0:00 intro 0:50 Items that are the same 1:08 Margin percentage 1:22 Markup percentage 2:09 Markup vs. Margin percentages 2:55 Absolute reference And make sure you subscribe to my channel! - EQUIPMENT USED -------------------------------- ○ My camera – https://amzn.to/3vdgF5E ○ Microphone - https://amzn.to/3gphDXh ○ Camera tripod – https://amzn.to/3veN6Rg ○ Studio lights - https://amzn.to/3vaxyy5 ○ Dual monitor mount stand - https://amzn.to/3vbZSjJ ○ Web camera – https://amzn.to/2Tg75Sn ○ Shock mount - https://amzn.to/3g96FGj ○ Boom Arm - https://amzn.to/3g8cNi6 - SOFTWARE USED -------------------------------- ○ Screen recording – Camtasia – https://chrismenardtraining.com/camtasia ○ Screenshots – Snagit – https://chrismenardtraining.com/snagit ○ YouTube keyword search – TubeBuddy – https://www.tubebuddy.com/chrismenard DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links I provide, I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel, so I can continue to provide you with free content each week!