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...
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 ...
