Discount vs Margin vs Markup
Discount is customer-facing (lower price). Margin and markup describe seller profit using different denominators.
Definitions
- Margin % = (selling price − cost) ÷ selling price × 100
- Markup % = (selling price − cost) ÷ cost × 100
After a discount
Margin is usually computed on the discounted selling price. A deep promo can erase margin even when markup on cost looked healthy at list price.
Reporting tip
Align with finance (margin) or merchandising (markup) before comparing dashboards—our calculators label each formula explicitly.