Convert between markup % and gross margin % instantly. Markup is on cost; margin is on selling price — mixing them up quietly erodes profit on every SKU.
Markup and margin describe the same profit from two different bases: markup is profit as a percentage of cost, margin as a percentage of selling price. Because the denominators differ, the two numbers never match — and quoting the wrong one loses money quietly.
A supplier who promises '25% markup' is offering a 20% margin. If you plan your business around a 25% margin but only mark up 25%, you'll fall short on every SKU. The conversion is worth committing to memory.
Buy at ₹100, sell at ₹125: profit ₹25. Markup = 25/100 = 25%. Margin = 25/125 = 20%. Same ₹25, two percentages — always confirm which one a quote refers to.
Margin divides by the (larger) selling price, markup by the (smaller) cost. So for the same profit, margin is the smaller percentage — and margin can never exceed 100%, while markup can be any value.
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