Brothh

What it means

Markup and margin are both pricing metrics but they use different denominators, so the numbers look different even when the math is identical.

Markup = (price − cost) ÷ cost. Margin = (price − cost) ÷ price. A $10 cost item sold at $15 has 50% markup but 33% margin. A $10 cost item sold at $20 has 100% markup ("keystone") but 50% margin.

Examples

$10 cost → $15 price

50% markup = 33% margin

$10 cost → $20 price

100% markup = 50% margin (keystone)

$10 cost → $40 price

300% markup = 75% margin

Do

Pick one and stay consistent — most retail buyers think in margin; most DIY makers think in markup.

Don't

Quote a 40% markup to someone expecting 40% margin — you will mis-price by a lot.

Related terms

COGS

Cost of Goods Sold — every cost directly tied to making and delivering one unit: materials, labor, packaging, shipping, processing fees.

Keystone Pricing

Classic retail pricing formula: sell at 2× wholesale cost. Yields a 50% margin (100% markup).

Calculators that use this

Profit Margin

Gross margin, net margin, and markup — convert between them cleanly so you do not mix up 40% margin and 40% markup.

Cost-Plus Pricing

Set a retail price from your cost and target margin — with a sanity check against competitor pricing.

Wholesale Markup

Price wholesale and retail in lockstep — keystone, MAP-friendly, and key-two markups with gross profit checks.