Margin and Markup

If we have BUY and SELL prices, then:

PROFIT = SELL - BUY.

• Margin = PROFIT / SELL x 100.
• Markup = SELL / BUY x 100 - 100.

In other words:

• Margin = PROFIT's part in the SELL price, or the part profit makes up in the sell price.
• Markup = the increase from the BUY price to the SELL price, or how much the SELL price has increased from the BUY price, in percent.

Negative Markup

There is a special case when Markup could become negative. It happens when DID Provider pays to System Owner (admin) for a call to the DID. When Provider Rate is > 0.

Example:

See also

• Calls per Day