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Margin = (revenue − cost) / revenue × 100%. Markup = (revenue − cost) / cost × 100%. Margin and markup are different: a 50% markup is only a 33% margin. To find selling price from cost and target margin: price = cost / (1 − margin%). Gross margin ignores operating expenses; net margin subtracts all costs. Retail typically targets 40–60% gross margin; restaurants 60–70%.
Gross margin % is profit as a share of selling price: price = cost ÷ (1 − margin%).