Markup vs Margin
Why a 40% margin is not a 40% markup, how to convert between them, and which one to use when pricing or reviewing profitability.
Read the guideDecision guides
Many business metrics sound alike but answer different questions. Each guide compares two commonly confused measures — what each divides by, a worked example, where people go wrong, and which calculator fits the question you actually have.
Why a 40% margin is not a 40% markup, how to convert between them, and which one to use when pricing or reviewing profitability.
Read the guideDollars versus percentage: how the same gross-level result reads differently, and why growing gross profit can hide a falling margin.
Read the guideRevenue efficiency versus investment return, with an example of a campaign that looks strong on ROAS but leaves little profit.
Read the guideCost per new customer versus cost per acquisition, why the denominator matters, and how blended and channel-level CAC differ.
Read the guideNeed a single formula with its variables and assumptions rather than a comparison? See the formula library.