Enter cost and selling price to instantly see gross margin, markup percentage, and profit per unit.
The selling price or total revenue
Cost of goods sold or total cost
Profit Margin: Profit as a percentage of revenue (selling price).
Markup: Profit as a percentage of cost.
Both measure profitability but from different perspectives.
Profit Margin
Markup
Gross Profit
Profit Margin = (Revenue - Cost) / Revenue x 100
Markup = (Revenue - Cost) / Cost x 100
A 50% margin equals a 100% markup. Margin is always lower than markup for the same transaction.
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