Markup is the difference between the wholesale cost of a product and its retail price, while margin is the percentage or ratio of profit to the sale price. Simply put, markup helps you calculate how much to charge for your product, while margin shows you how much money you’re actually making after all expenses are taken into account. Understanding markup and margin helps businesses make cost-effective decisions, as well as ensuring that they remain profitable. It’s important for business owners to keep track of these two concepts and their relationship – it can mean the difference between having a successful business venture or failing miserably!