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Margin or mark-up: which should I choose?
The difference between margin on price and mark-up on cost, and how the calculator treats each.
Last reviewed 2026-11-11
Margin is profit as a share of the selling price. Mark-up is profit as a share of the cost. The same product has a different number for each: a price of 100 with a cost of 75 is a 25% margin but a 33% mark-up.
Margin or mark-up: short video
Short video, coming soon. The steps above show the same thing.
- Margin on price: use it when you think in terms of how much of each sale you keep. It is the safest choice when fees are a percentage of the price.
- Mark-up on cost: use it when your supplier or industry quotes a mark-up.
- Fixed profit: use it when you want to earn a set amount on every order.
Set your usual choice under Settings, Default profit type. You can still change it on each calculation.