Markup and margin calculation is a way for business owners to assess the profitability of their products and services. In short, markup is the difference between a product’s cost price and selling price, while margin is the percentage of that difference. Calculating markup and margin allows business owners to quickly assess how much money they are making from a particular sale. With this information in hand, owners can make informed decisions on whether to raise or lower prices, or even to discontinue certain goods and services. By understanding markup and margin calculations, business owners can ensure that their operations remain profitable and competitive.