Margin Calculator
Calculate profit margin, markup, cost, or revenue.
Examples
Retail Product Pricing
Frequently Asked Questions
What is the difference between margin and markup?
What is a good profit margin?
How do I convert between margin and markup?
Quick Tips
Double check your inputs. Ensure units match (e.g., inches vs cm).
How to Use This Calculator
Select a calculation mode: compute margin from cost and revenue, find revenue from cost and markup, calculate cost from revenue and margin, or determine revenue from cost and target margin. The calculator shows profit margin, markup percentage, and profit amount, along with a comparison table.
Understanding the Formula
Profit Margin = (Revenue - Cost) / Revenue x 100. Markup = (Revenue - Cost) / Cost x 100. Revenue = Cost / (1 - Margin%). Margin and Markup are related: Markup% = Margin% / (100% - Margin%).
Examples
Retail Product Pricing
A product costs $60 and sells for $100. The profit margin is 40% ($40/$100), while the markup is 66.7% ($40/$60). Note that margin and markup are different percentages for the same profit.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of selling price (revenue). Markup is profit as a percentage of cost. A 50% markup results in a 33.3% margin. Margin is always lower than markup for the same transaction.
What is a good profit margin?
It varies by industry. Software companies often have 60-80% gross margins. Retail averages 20-50%. Grocery stores may operate on 1-3% net margins. Higher margins generally indicate stronger pricing power.
How do I convert between margin and markup?
Markup to Margin: Margin = Markup / (1 + Markup). Margin to Markup: Markup = Margin / (1 - Margin). For example, a 100% markup equals a 50% margin.