what is the difference b/w interest & markup?
Answers were Sorted based on User's Feedback
Answer / dev
Interest is the additional amount paid for interest bearing borrowings(loan),, where the mark up is the additional amount added to the cost of a product or service,, to reach a selling price and thereby to earn a profit.
Is This Answer Correct ? | 87 Yes | 5 No |
Answer / n v nayak
Interest is the price paid for borrowing, and mark up is
the margin loaded.
Is This Answer Correct ? | 20 Yes | 5 No |
Answer / abdul haseeb khan
interest is the compensation paid by borrower for the borrowed money to the lender, normally on monthly basis or annually basis.
markup is added on the total cost incurred by the producer of good or service in order to create profit.
Is This Answer Correct ? | 18 Yes | 4 No |
Answer / ahmad raza
the additional amount paid to lender is the interest whereas
mark-up is added to the cost of a product/service to earn
profit but now a days, these are treated as same i.e. there
is no such difference.
Is This Answer Correct ? | 14 Yes | 4 No |
Answer / usman ghani
interest is a fixed amount which is paid monthly or annually on amount borrowed here it should be noted that interest is paid every month or year till the borrowed amount is returned where as the markup is the amount added to the cost of something which is bought here it should be noted that the additional amount is once added in coast that includes profit
Is This Answer Correct ? | 10 Yes | 0 No |
Answer / obaid
Interest is the amount paid in addition to the original price while mark up is the topping up on the original price. The main difference is; they are treated differently in the books of accounts though leading to the same point ie profit earned at the end of an accounting period resulting in an increased owner's equity.
Is This Answer Correct ? | 5 Yes | 2 No |
Answer / malik a. hafeez
Interest is the cost of borrowed amount. The cost may be paid monthly, semi-annually or annually depending on the terms and conditions agreed however mark-up is the additional amount charged on the cost of a product/service.
Is This Answer Correct ? | 2 Yes | 1 No |
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