Quick answer
What is the difference between margin and markup?
Margin = profit ÷ selling price; markup = profit ÷ cost. A 25% markup equals a 20% margin.
Profit = Selling price − Cost
How it works
Garment Profit Calculator
See profit per piece, margin and markup — and the total profit across the order.
Margin is profit relative to price; markup is profit relative to cost. Both describe the same profit from different bases.
Formula
The formula, in full
- Profit
- Selling price − Cost
- Margin %
- Profit ÷ Selling price × 100
- Markup %
- Profit ÷ Cost × 100
Example
Selling at ₹550, cost ₹470
- 01Profit = ₹80
- 02Margin = 14.55%
- 03Markup = 17.02%
Use “Load Example” above to run this example in the calculator.
Industry tip
Industry tip
“Never mix margin and markup in negotiations — a 20% markup is only a 16.7% margin.”
Assumptions
What this calculator assumes
- Cost entered is the full landed cost to you.
FAQ
Frequently asked questions
What is the difference between margin and markup?
Margin = profit ÷ selling price; markup = profit ÷ cost. A 25% markup equals a 20% margin.
Formula and worked example checked by the TextileSuite team on 17 October 2026. Results are planning estimates — confirm critical numbers against your own samples and lab reports.