What is markup and what is margin?

Markup and margin are both different ways of looking at your profit on a sale. They are similar because they focus on the same amount of money, the difference is between your buying, and selling prices. They generally express that amount as a percentage.

Mark up is the percentage by which you bump up the prices. Margin, on the other hand, tells you what percentage of a sale is profit.

Your markup percentage is always bigger than the margin percentage, even though they refer to exactly the same amount of money.