All guidesPricing · 5 min
Profit margin vs markup: the seller difference
A plain-English guide to two numbers that look similar but answer different pricing questions.
Margin looks at the sale price
Profit margin asks how much of the sale price you keep as profit. It is usually the better number for comparing listings and channels.
A 30% margin means 30p of every £1 of revenue is left before whatever costs you have not included.
Markup looks at the cost
Markup asks how much you add on top of cost. It is useful when setting prices from a supplier cost or wholesale cost.
Markup can sound bigger than margin, which is why sellers should be careful when switching between the two.
Use both, but for different jobs
Use markup when building a price from cost. Use margin when deciding whether that price is healthy enough to sell.
The cleanest workflow is cost, markup, fee check, then final margin check.