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Business / ACTUALLY USEFUL

Profit margin vs markup

Two percentages with two different denominators.

YOUR NUMBERSResults update as you type
Gross profit per unit£40.00
Gross margin40%
Markup66.67%

Method & assumptions

Margin = profit ÷ selling price. Markup = profit ÷ cost. Negative values mean a loss. Prices must be positive; overheads and tax are not included.

One calculation leads to another.

That’s how you go from your electricity bill to a bath full of ducks.