Question 1

What is the difference between margin and markup?

Accepted Answer

Markup compares profit to cost, while margin compares profit to revenue. Both describe profitability but with different denominators.

Question 2

Does this include overhead like rent and payroll?

Accepted Answer

This formula typically uses direct cost for gross margin. If you want net margin, include additional operating expenses and use the same structure.

Question 3

What if revenue is zero?

Accepted Answer

Margin is undefined when revenue is zero because the denominator becomes zero. Use a guard check or different metric.

Margin Calculator

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