💰 Margin Calculator
Calculate profit margin, markup, and selling price from cost and revenue. Understand the difference between margin and markup for smarter pricing.
📊 Cost & Price
📈 Target Margin
💡 Quick Reference
Profit
$50
Margin
33.3%
Markup
50.0%
Margin = (Price - Cost) / Price × 100% | Markup = (Price - Cost) / Cost × 100%
Understanding Margin vs Markup
Margin measures profitability relative to selling price — how much of each dollar earned is profit. Markup measures profitability relative to cost — how much you add on top of cost. They're often confused but calculate very differently.
Frequently Asked Questions
What is the difference between margin and markup?Margin is profit % of selling price. Markup is profit % of cost. A 50% markup on $100 = $150 price = 33.3% margin.
What is a good profit margin?It varies by industry. Retail: 3-5%, SaaS: 60-80%, restaurants: 3-9%, consulting: 20-30%. 10%+ net margin is healthy.
How do I calculate selling price from margin?Price = Cost ÷ (1 - Margin%). $100 cost with 25% margin = $100 ÷ 0.75 = $133.33.
Gross vs net profit margin?Gross = (Revenue - COGS) / Revenue. Net = (Revenue - All Expenses) / Revenue. Net includes operating costs, taxes, interest.
Can margin be over 100%?No. Profit can't exceed revenue. However, markup can exceed 100% when profit exceeds cost.
How do I calculate profit from margin and revenue?Profit = Revenue × Margin%. $1,000 revenue with 20% margin = $200 profit.
Why is margin more useful than markup?Margin relates directly to your bottom line. $1 margin = $1 per sale. Markup varies with cost basis.
How do discounts affect profit margin?Significantly. A 10% discount on a 25% margin product reduces margin to 17.8%. Always check with this calculator.