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Margin vs Markup vs Profit Explained With Worked Numbers
Prompt
Product or service: {{PRODUCT}}
Cost per unit: {{UNIT_COST}}
Selling price per unit: {{SELLING_PRICE}}
Target gross margin: {{TARGET_MARGIN}}
Typical discount offered by sales: {{DISCOUNT}}
1. Define markup, gross margin, and gross profit in one sentence each and write the formulas.
2. Calculate each for my numbers, showing every step.
3. Calculate the selling price needed to hit the target margin and explain why adding the same percentage as markup gives a different result.
4. Show the margin after the typical discount, and the discount level at which gross profit reaches zero.
5. Give a three-line rule of thumb for sales colleagues and one warning about costs left out (delivery, payment fees, returns).
Rules: use only these numbers, check the arithmetic twice before presenting, and say that the figures are gross measures that ignore overheads and tax unless I provided them.
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About this prompt
“Margin vs Markup vs Profit Explained With Worked Numbers” is a free prompt for ChatGPT in the Education & Learning category, 153 words long, added to The Prompt Index on October 28, 2026 by The Prompt Index. Copy it with the button above, paste it into ChatGPT or any other AI chat assistant, and send it.
It has 5 placeholders to fill in first:
{{PRODUCT}}, {{UNIT_COST}}, {{SELLING_PRICE}}, {{TARGET_MARGIN}}, {{DISCOUNT}}.
Use the “Customize this prompt” fields to personalise it before you copy.
Recommended models: ChatGPT, Claude, Gemini.
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