What is a markup versus margin percentage?

Markup % is based on cost and margin % is based on sale price.  

Let's dig deeper.

A margin amount is the difference between a sale price and its cost. 

Margin Amount = Sale Price - Cost

For example, if a shade's sale price was $1,000 and its cost was $500, the margin amount would be $500.  

The margin percentage is simply the margin amount divided by the sale price.

Margin % = Margin Amount / Sale Price

Using the same example, the margin % would be 50% ($500 margin amount / $1,000 sale price).

As you can see above, margin percentage is related to the sales price. 

A markup on the other hand is in relation to an item's cost.

Markup % = Margin Amount / Cost

Using the same example, the markup % would be 100% ($500 margin amount / $500 cost).

Below is the relationship between margin and markup.

In summary: