Mark-up v’s Margin

A common confusion that is worth clearing up. If a product cost $80 and is sold for $100 what is the Margin and Mark-up of that product?

Margin - is the sale price ($100) minus the cost price ($80) ie $100-$80 = $20 Margin or as a percentage ($100-$80)/$100 = 20% (profit/sale)

Markup - is the amount by which the cost price ($80) of a product is increased from the sale price ($100). ie ($100-$80)/$80 = 25% (profit/cost)

Here is a very useful website: Markup Calculator