1 guide

Freelance & Business

The arithmetic that decides whether a business is profitable at the price it charges. Markup is measured against cost and margin against price, they are never the same number, and confusing them under-prices every unit sold.

November 21, 2025 · 6 min read

A 40% Markup Is a 28.57% Margin, and the Gap Costs $80,000

Markup is measured against cost and margin against price, so they are never the same number. Confusing them is the most common pricing error in small business, and it under-prices every unit you sell.

Calculators for freelance & business

Margin CalculatorCalculate gross profit, margin, and markup from cost and revenue and see clearly why margin and markup are not the same number.Commission CalculatorCalculate commission earnings from a sale amount and rate, plus total pay with any base salary.

Freelance & Business

A 40% Markup Is a 28.57% Margin, and the Gap Costs $80,000

Calculators for freelance & business

Other topics