What you provide
What you provide
- Unit cost: Cost basis used for markup and gross profit.
- Selling price: Net price used as the gross-margin denominator.
PRICING / TWO DENOMINATORS
Convert the same unit cost and selling price into gross margin on revenue and markup on cost so the two percentages are not confused.
Use boundary
Profit is selling price minus cost; margin divides profit by selling price, while markup divides identical profit by unit cost.
Margin = profit / selling price; markup = profit / unit cost; profit = selling price - cost.
What you provide
What you receive
Use boundary
Entered cost should consistently include the variable and allocated components required by your pricing policy.
This is an educational planning estimate, not accounting, tax, lending, or pricing advice. Confirm definitions, source records, commercial terms, and decisions with the responsible professional.