What is a good gross margin?

Retail targets 30-50%. Software and SaaS businesses typically have 60-80% gross margins.

Is markup always higher than margin?

Yes. For the same profit, markup % is always higher than margin % because cost < revenue.

Margin vs Markup

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Gross margin is calculated on revenue (selling price). Markup is calculated on cost. These are different ratios often confused in business.

Margin and Markup Formulas

Two ways to express profit relative to different bases.

Margin = (Revenue - Cost) / Revenue × 100

Profit as % of revenue.

Markup = (Revenue - Cost) / Cost × 100

Profit as % of cost.

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Discount

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GST

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P&L

Calculate profit and loss amount and percentage.