What's the difference between margin and markup?

Margin uses revenue as the base; markup uses cost. A 50% markup is only a ~33% margin.

What is a healthy margin?

It depends on the business. Grocery is often 70%. Benchmark against your industry.

Profit Margin Calculator

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About this tool

Profit Margin Calculator

From cost and revenue, get profit, margin, and markup.

Enter cost and either selling price or desired margin to compute profit, profit margin (profit / revenue), and markup (profit / cost). Useful for pricing products and services.

Category: Calculators
Where it runs: Your browser
Version: v1.0.0
Price: Free · no sign-up

How to use

Step by step

1
Pick what you know
Either cost + selling price, or cost + a target margin.
2
Enter the numbers
Cost is always required. The second value depends on your mode.
3
Read margin and markup
Margin = profit ÷ revenue. Markup = profit ÷ cost. They're different numbers for the same deal.

Frequently asked

Questions

Margin uses revenue as the base; markup uses cost. A 50% markup is only a ~33% margin.

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