What Is Margin?

Margin is the difference between the price of a good or service and the amount of money required to produce it.

Margin Formula:

Example of How to Deduce Margin:

If a product’s retail price is ₹ 120 and profit is ₹ 30.

Then, margin = Profit/Retail Price

Margin = 25/100

Margin = 14

Difference Between Markup and Margin:

The point of markup vs margin is:
Markup is cost-based thinking, and margin is value-based thinking.