Compare profit margin and markup side by side. Both use gross profit, but one divides by revenue and the other by cost.
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My workspace →Enter revenue and costs for one item or the same group of items. A $100 sale with $60 cost gives $40 gross profit, a 40% margin and a 66.67% markup.
Gross profit = revenue − cost Margin = gross profit ÷ revenue × 100 Markup = gross profit ÷ cost × 100
The starter inputs above produce:
Gross profit: $40.00
Change the inputs to match your own situation. The result is an estimate or text transformation, not a substitute for reviewing your source data.
No. A $100 cost marked up 50% sells for $150. Profit is $50 and margin is $50 ÷ $150, about 33.33%.
For this model, enter amounts that are actually your sales revenue rather than tax collected on someone else’s behalf.
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For $9.79 of modeled print cost and a $13.99 quote, gross profit is $4.20 before selling fees. That is about 30.02% of revenue but 42.90% of cost. Margin and markup are not interchangeable; displayed prices rounded to cents can shift either slightly.
For order profit after marketplace fees, use the marketplace worksheet first. Keep the same cost scope when comparing margins; do not compare a material-only cost with an order cost that includes labor and postage.
Values are not transferred automatically. Copy the relevant cost into the next worksheet, keep units consistent, and avoid counting the same cost twice. Estimates are planning aids, not guaranteed prices or earnings.