Markup

Markup expresses the difference between selling price and a defined cost as a percentage of that cost: price minus cost, divided by cost, multiplied by 100. Use the same sale unit and VAT basis for both amounts.[1] Gross margin instead uses sales revenue as its denominator.

Define whether the cost base includes purchasing alone or also inbound transport and handling. Identical markups on different bases do not imply comparable returns. Markup is a pricing calculation, not automatically net profit: other selling expenses, fixed costs and returns can reduce the final result.