Profit & Margin Calculator
Margin divides by price; markup divides by cost. They are never the same number.
The classic confusion
Cost 100, sell 150: markup is 50%, margin is 33%. Quoting markup as margin makes a business look more profitable than it is.
Target margin pricing
To hit a margin, divide cost by (1 − margin). A 40% margin on 800 needs a price of 1,333, not 1,120.
Which should I quote?
Margin, internally — it is the number that survives into profit. Markup is a pricing tool.
What about overheads?
Gross margin excludes them. Net margin is after all costs.