Margin and markup: what is the difference?
Example: cost Rp80,000, selling price Rp100,000, profit Rp20,000. Margin = 20,000 ÷ 100,000 = 20%. Markup = 20,000 ÷ 80,000 = 25%. The figures always differ because the denominators differ, and margin never reaches 100% while markup can.
A common mistake is raising the cost by 20% and assuming that is a 20% margin. That is a 20% markup; the margin is only about 16.7%. Pick one term and use it consistently in reports and negotiations.