By Strong 8K Editorial · · Reseller
Use the same cost and sale price
Consider a hypothetical six-month sale priced at $30 using Starter credits. Six credits at $1.85 each cost $11.10. Before extra costs, the difference is $18.90. Both margin and markup describe that same $18.90, but they compare it with different numbers. The $30 sale price is an illustration chosen for this calculation, not a required reseller price or the published Strong 8K six-month retail price.
Margin compares the difference with revenue
The formula is (selling price minus included costs) divided by selling price, multiplied by 100. In the example, $18.90 divided by $30 gives a 63% margin before other costs. This answers what share of the selling price remains after the costs included in the calculation. If the selling price is zero, a percentage margin is not defined; show the cash result instead of forcing the formula to produce a percentage.
Markup compares the difference with cost
Markup uses cost as the denominator. The example is $18.90 divided by $11.10, multiplied by 100, or approximately 170.27%. That larger percentage is not a larger cash profit; it is a different comparison. Saying a sale has a 63% margin and a 63% markup would therefore describe two different price relationships. Always name the measure beside the percentage when sharing a calculation with a colleague.
Change the result when costs change
If the same sale has $3 of additional per-customer costs, the included cost becomes $14.10 and the remaining amount becomes $15.90. The margin is then 53%, while markup on that combined cost is about 112.77%. State whether your measure includes only credits or also payment, acquisition and support costs. A percentage without its cost definition can make two otherwise sensible comparisons misleading.
Keep the price decision connected to reality
Use the reseller calculator to test your own full-term selling price and extra costs, then review the actual cash needed for whole packs. A high percentage does not establish that customers will buy, pay promptly or renew. Track the currency amount per completed sale alongside percentages. These arithmetic examples explain the labels, allowing you to interpret estimates without treating a markup percentage as a promise of business performance.