What is the difference between Margin and Markup? This is the most common mistake in retail and e-commerce. While both numbers deal with profit, they look at it from different angles:
- Margin (Gross Margin): This is your profit measured as a percentage of your Selling Price. If you sell a shirt for $100 and it cost you $50, your profit is $50. Your Margin is 50% ($50 profit / $100 price). Margin can never equal or exceed 100%.
- Markup: This is your profit measured as a percentage of your Cost. Using the same shirt, your profit is $50, but because your cost was $50, your Markup is 100% ($50 profit / $50 cost).
How to use this tool:
- Calculate from Price (Diagnostic): Use the left tool when you already know what you are charging your customers and need to report your Gross Margin to your accountant.
- Calculate from Target Margin (Pricing): Use the right tool when you are launching a new product. If your business model requires a 40% margin to survive, input your cost and the "40" target. The engine will instantly output the exact dollar amount you must charge the customer.
Why ByteBuster is Different (The Architecture): Corporate financial data is highly sensitive. The ByteBuster architecture wires the UI directly into your browser's local memory. The complex divisions preventing divide-by-zero errors are executed entirely client-side. Your unit costs and profit targets are never uploaded to a cloud server, ensuring complete financial privacy.