What's the difference between margin and markup?

Purchased at 100, Sold at 200. Markup is 100% while margin in 50%.

Markup typically refers to the increase over the cost of a retail product. $5 cost with $5  (100%) markup would be $10 retail price.    Margin is the result of subtracting the cost from the price.  $10 price less $5 cost results in $5 margin.    Both Markup and Margin can be cited a percentage or dollar amount: Markup is % increase over Cost, Margin is % profit of sale price.

Shawn your intentions are good, but the example given  in the question obscures difference between markup and margin...t If a Sausage has a selling price of $2.00 and a total cost of $1.11, then the Markup is 80% (Sales Price - Total Cost)/Total Cost. Whereas a Gross Margin for that sausage is (Sales Price - Total Cost)/Selling price; or, (2.00 - 1.11)/)2.00 is 44.5%. In this case, thinking you're making 80% "Margin" because you're calculating markup could be fatal as you still have all other non COGS related expenses to factor -  Sales, G&A etc...it is a very common mistake in pricing. "I'll just times cost by 50% to get my margin..." then wonder why I'm not getting 50% margin...

From http://accountingcoach.com: Gross margin or http://www.accountingcoach.com/blog/what-is-gross-profit is defined as http://www.accountingcoach.com/blog/what-are-sales minus http://www.accountingcoach.com/blog/cost-of-goods-sold-2. If a retailer sells a product for $10 which had a cost of $8, the gross profit or gross margin is $2. The gross profit ratio or the http://www.accountingcoach.com/blog/gross-margin-ratio expresses the gross profit or gross margin amount as a percentage of sales. In our example the gross margin ratio is 20% ($2 divided by $10). Markup is used several ways. Some retailers use markup to mean the difference between a product's cost and its selling price. In our example, the product had a cost of $8 and it had a markup of $2 resulting in a selling price of $10. The $2 markup is the same as the $2 gross profit. However, the markup percentage is often expressed as a percentage of cost. In our example the $2 markup is divided by the cost of $8 resulting in a markup of 25%. (Some retailers may use the term markup to mean the increase in the original selling. For example, if the $10 selling price was increased to $11 because of high demand and limited supply, they would say the markup was $1.)

In the specific content of revenues and expenses: Margin means the revenue you retain after accounting for direct costs (ie, variable costs like COGS) to collect the revenue ; whereas markup is a percentage calculated on base costs to theoretically cover overhead (fixed costs).

Elias, I think you have it the other way around.  Markup up is a much smaller number and can sometimes miss overhead costs.  It gives your gross profit only.  Not what you take home before taxes. Margin covers overhead and gives you a net profit.  For example, $100 wholesale cost x 50% markup yields $150.00 selling price.  If your overhead is 25% of revenue = $37.50, your net profit is $12.50 which may not be enough.  So now look at 50% margin...50% margin is a 100% markup up = $100 wholesale x 100% yields $200 selling price.  Then minus the same 25% operating expenses x revenue = $50, gives you a net profit of $50 which is healthier.  Basically, markup equals gross profit and margin equals net profit or another way of looking at it is to say that if you want the same net profit, your markup has to be higher than your margin.

https://medium.com/@shubhrabhatnagar/entrepreneur-finance-profit-margin-vs-profit-percentage-or-markup-c9d954e4c470

The markup is what you add to your cost to get your selling price. Say something cost you $1.00 and you sold it for $1.25, then your markup would be .25 or 25%. Your selling price is 25% higher than your cost.Your margin is the difference between your cost and your selling price compared to your selling price. So in the previous example your margin would still be .25, but as a percentage it would be 20% (.25/1.25*100). Your gross profit is 20% of your revenue.