Margin Calculator
Profit Margin
Calculate profit margin from cost and revenue (or selling price)
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Price from Margin
Calculate selling price to achieve a target profit margin
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Price from Markup
Calculate selling price using a markup percentage on cost
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%
Formula
Margin = (Revenue - Cost) / Revenue × 100 | Markup = (Revenue - Cost) / Cost × 100
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of selling price (profit/revenue). Markup is profit as a percentage of cost (profit/cost). A 50% markup = 33.3% margin. Margin is always lower than markup for the same transaction.
What is a good profit margin?
It varies by industry. Retail: 2-5%. Software/SaaS: 70-90%. Restaurants: 3-9%. Manufacturing: 5-10%. Service businesses: 15-25%. Higher margins generally indicate stronger competitive positioning.
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