Profit Margin Calculator
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Formula: Margin = (Revenue - Cost) / Revenue × 100%; Markup = (Revenue - Cost) / Cost × 100%
Profit Margin Calculator
Profit margin shows what percentage of revenue is profit. Markup shows how much above cost you are charging.
Conversion Formula
Margin = (Revenue - Cost) / Revenue × 100%; Markup = (Revenue - Cost) / Cost × 100%
Margin = Profit/Revenue × 100. Markup = Profit/Cost × 100. They measure the same profit differently.
Step-by-Step Examples
Cost $30, Revenue $50 = Margin 40%, Markup 66.67%
Profit $20; 20/50=40%; 20/30=66.67%
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of revenue; markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin.
What is a good profit margin?
Varies by industry. Retail: 2-5%, SaaS: 70-90%, restaurants: 3-9%, consulting: 15-25%.
How do I calculate selling price from margin?
Selling Price = Cost / (1 - Margin%). For 40% margin on $30 cost: $30 / 0.60 = $50.