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# What are the difference between profit margin and markup?

**What are Markup and Margin?**

They are percentages that are used to calculate the margins.  
  
**Markup** is used to calculate the profit rate with Cost as the denominator.   
Markup = [Profit / Cost ] x 100

**Margin** is used to calculate the profit rate with Sales as the denominator.   
Margin = [Profit  / Sales ] x 100  


**How to calculate markup based on profit margin?**

1. This is how you calculate markup based on the profit margin by simply using the [Profit Margin Calculator](https://www.shopify.com/tools/profit-margin-calculator). 
2. From the calculator, you can determine the profit just by entering the cost price and markup percentage. 
3. Once you get the result, you just need to take the (Profit / Margin) = Markup Price
  
For example, if your cost price is $120 and you would like to set a margin of 60%, you need to calculate the markup. To do this, divide the markup by the margin, which is 150/60 = 2.50

![](https://storage.crisp.chat/users/helpdesk/website/b219050a5836c000/untitled1-ezgifcom-video-to-gi_2ejimk.gif)

For example,

This shoe's price is $120 and you would like to have 60% margin from the selling price. You need to add the markup as in the calculator, do alter the markup until you get 60% at the gross margin. $120 * 2.50 = 300 (Profit will be $180) 
If you would like to have different [Pricing Condition](https://stocksync.crisp.help/en/article/price-field-966ydg/) 

![](https://storage.crisp.chat/users/helpdesk/website/b219050a5836c000/screenshot-2024-07-25-at-41236_h1wiy3.png)

  
**Pricing condition in Stock Sync**

Please calculate the markup based on the above steps and put it in the Pricing Conditions in Stock Sync.   
  
If  50%, 
Then use 1.50 to markup the price.   
  
**Price -> Setting -> Price Conditions**

![](https://storage.crisp.chat/users/helpdesk/website/721019a7022d1400/73aea730-3d19-4dec-980d-14a286_qbm897.png)