Profit margin is measured on the selling price; markup is measured on the cost. That is why a 40% margin is a 66.67% markup, not 40%. Use amounts excluding VAT.
| Selling price | €100.00 |
| Cost of the product | €60.00 |
| Profit | €40.00 |
| Profit margin (on the price) | 40% |
| Markup (on the cost) | 66.67% |
Educational estimate, not financial advice. It works out the gross margin of one product (price minus cost); it does not include business overheads (rent, salaries, taxes), which lower the net margin.