Profit margin

Margin, profit margin, winstmarge or opslagpercentage refer all to the difference between sales price (or revenue) and purchase price (direct costs, costs of sales or just costs), expressed as a fraction of either of these figures.

Example: Profit & loss

To be used in the illustrations below:

English terminology	Dutch terminology	Amount
Revenue Sales	Omzet Verkopen	€ 500
Direct costs Costs of sales Costs	Directe kosten kosten	€ 300
Gross profit Profit	Brutowinst Winst	€ 200

Margin

Margin, profit margin or winstmarge, expresses the difference between revenue and direct costs, as a perception of revenue:

margin = (revenue - costs) / revenue * 100%
       = gross / revenue * 100%
       = (€500 - €300) / €500 * 100%
       = €200/€500 * 100%
       = 40%

Markup

Markup, opslag or opslagpercentage, is the opposite of margin: Now the difference is expressed as a percentage of the costs, rather than of revenue:

markup = (revenue - costs) / costs * 100%
       = profit / costs * 100%
       = €200 / €300 * 100%
       = 66%