How the calculation works
Gross profit per unit is selling price minus unit cost. Margin divides that profit by selling price. Markup divides it by cost. Multiply either ratio by 100 to express it as a percentage.
An item that costs 60 and sells for 100 earns 40 gross profit per unit. Its margin is 40%, while its markup is approximately 66.7%.
What to keep in mind
Use one currency and a consistent treatment of sales tax. Include the direct costs you intend to measure in unit cost. These results do not account for all business expenses and are not net profit.
Doing this for every product?
A calculator is a useful starting point. If keeping stock records current is becoming the hard part, explore whether dedicated software fits your workflow.
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