Margin and markup are different numbers from the same two inputs, and confusing them is expensive at scale.
You will be redirected to the Shopify app store.
Profit margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of cost: (price − cost) ÷ cost.
| Cost | Price | Markup | Margin |
|---|---|---|---|
| 10.00 | 15.00 | 50% | 33.3% |
| 10.00 | 20.00 | 100% | 50% |
| 10.00 | 25.00 | 150% | 60% |
| 10.00 | 40.00 | 300% | 75% |
Setting “100%” in a pricing rule when you meant a 100% margin produces a price that is half what you intended. Applied to a catalog, that is a bad quarter.
Shopify calculates margin from cost per item, so the reports are only as good as that field. Once cost is accurate, a pricing rule can be expressed once — cost plus a percentage, rounded — and re-applied whenever costs move.
Successive percentage markdowns compound: three 20% cuts leave you at 51% of the original price. If you have a floor, calculate the final markdown stage from cost rather than from the current price.
Bulk Product Edit by MITS edits this field in bulk across a filtered part of your catalog, with a log and a one-click revert.
You will be redirected to the Shopify app store.