Understanding your margin is the difference between a thriving business and a hobby that costs you money. Many entrepreneurs mistake high turnover for high profit, but the Instant Margin Geni helps you see the truth behind the numbers.
Markup is what you add to the cost; Margin is what you keep after the sale. Using a 50% markup results in a 33.3% margin. If your overheads are 35%, a 50% markup actually means you are losing money on every sale.
In South Africa, VAT can be a silent profit killer. If you are VAT registered, you must calculate your margin on the exclusive price to avoid inflating your perceived profit. This tool automatically handles the input and output VAT adjustments based on your status.