Markup vs. Gross Margin: Know the Difference

Summary

Hollow Point Trading shares a lesson on why a 50% markup is not the same as a 50% gross margin. Using a product that costs $80 and sells for $120, the example shows $40 in gross profit, a 50% markup, and how gross margin uses a different calculation before overhead, interest, and taxes.

https://youtu.be/hLHCnD11UKw

A fifty percent markup is not a fifty percent gross margin #GrossMa...

Markup vs. Gross Margin: Know the Difference
A fifty percent markup does not mean a fifty percent gross margin. Imagine a hypothetical product costs eighty dollars and sells for one hundred twenty dollars. Gross profit is forty dollars before overhead, interest and taxes. Markup divides that forty dollar gross profit by the eighty dollar cost. It is fifty percent. Gross margin divides the ...

The latest from Hollow Point Trading

AI Demand Rebounds: Can QQQ Hold Its Recovery?

Hollow Point Trading’s October 20, 2026 market deep dive examines whether QQQ can sustain its recovery as AI demand improves. It connects AI valuation concerns …