Margin Formulas/Calculations:

1. The gross profit P is the difference between the cost to make a product C and the selling price or revenue R.

P = R - C

2. The mark up percentage M is the profit P divided by the cost C to make the product.

M = P / C = ( R - C ) / C

3. The gross margin percentage G is the profit P divided by the selling price or revenue R.

G = P / R = ( R - C ) / R