Margin Calculator
Use the Margin to work through margin from the values you enter. Review the notes below the result so you understand what the figure represents.
Profit margin
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Profit —
Markup —
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How it works
Margin = profit ÷ revenue × 100; markup = profit ÷ cost × 100How to use the Margin
Enter the requested values and start with one realistic example. Read the result together with its unit or label, then change one input at a time if you want to compare options.
Use the result as a planning estimate. Rates, fees, rules and personal circumstances can change the final figure.
Frequently Asked Questions
What is the difference between margin and markup?
Markup is profit relative to cost; margin is profit relative to selling price. A product costing $60 sold at $100 has a 66.7% markup but a 40% margin — quoting one when you mean the other misprices everything.
What is a good profit margin?
It varies wildly by industry: groceries run 1–3% net, restaurants 3–9%, software 70%+ gross. Compare against your own sector, not a universal number.
How do I price for a target margin?
Divide cost by (1 − margin): for a 40% margin on a $60 cost, price = 60 ÷ 0.6 = $100. Multiplying cost by the margin gives the wrong (lower) price.