𝐖𝐡𝐚𝐭'𝐬 𝐭𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐌𝐚𝐫𝐠𝐢𝐧 𝐚𝐧𝐝 𝐌𝐚𝐫𝐤𝐮𝐩?

In construction margins can mean the difference between working for free or making sure the costs are covered..

So what's the difference?

Margin represent the amount added to the cost price to arrive at the selling price making sure that costs are covered.
Calculate Margin by (Selling Price-Cost Price) / Cost Price

Markup represents the profit as a percentage of the selling price used to assess profitability and financial health.
Calculate Markup by (Selling Price-Cost Price) / Selling Price

How much revenue do you have left after subtracting Cost of Goods Sold?



accountant accounting quickbooks quickbooksonline jobcost costaccountant costing margin markup generalcontractor construction consultant jobcostaccountant outsourcedaccountant womeninconstruction palmbeachaccountant forensincaccountant

 

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