Where Does Your Dollar Go?
Most business owners confuse markup with margin. Move the sliders to see how fast revenue gets consumed — and how little is left as actual profit.
$100
$60 (60%)
$35 (35%)
Gross Profit$40
Gross Margin40.0%
Net Profit$5
Net Margin5.0%
Break-Even Revenue$88
Revenue$100
COGS (60%)$60
Gross Margin (40%)$40
Expenses (35%)$35
Profit (5%)$5
⚡Markup ≠ Margin — Here's the Difference
Your Markup
66.7%
% added on top of cost
Your Actual Margin
40.0%
% of revenue that's gross profit
67% markup sounds great — but your actual margin is only 40.0%. That's a 27 point gap between what owners think they make and what they actually keep.
Common Markup → Real Margin
10%
↓
9.1%
20%
↓
16.7%
25%
↓
20%
33%
↓
24.8%
50%
↓
33.3%
75%
↓
42.9%
100%
↓
50%
Markup %Actual Margin %