What the calculation measures
Margin and markup use different denominators. Confusing them can cause pricing errors even when the dollar profit is correct.
How to interpret the result
Use margin to understand how much of selling price remains after cost; use markup when pricing from a known cost base.
Run scenarios instead of one answer
Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.
Limits and assumptions
The calculation includes only the cost you enter. Overhead, payment fees and taxes may need to be added separately.