Margin Calculator | Profit Margin & Markup Calculator
Calculate selling price, profit margin, markup, and conversion between margin and markup with our comprehensive margin calculator.
Category: Financial
Margin is the profit percentage of the selling price (Profit ÷ Price).
Markup is the profit percentage of the cost (Profit ÷ Cost).
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that represents profit. It's calculated as (Revenue - Cost) ÷ Revenue × 100%. Margin represents how much of each dollar of revenue is kept as profit.
What's the difference between margin and markup?
Margin is the profit percentage of the selling price (Profit ÷ Price), while markup is the profit percentage of the cost (Profit ÷ Cost). For example, if you buy an item for $10 and sell it for $15, your margin is 33% (($15-$10)÷$15) and your markup is 50% (($15-$10)÷$10).
How do you calculate selling price from cost and margin?
To calculate selling price from cost and desired margin percentage: Selling Price = Cost ÷ (1 - Margin as decimal). For example, if cost is $10 and desired margin is 30%: Selling Price = $10 ÷ (1 - 0.3) = $10 ÷ 0.7 = $14.29.
What is a good profit margin?
A good profit margin varies widely by industry. Retail typically ranges from 20-50%, restaurants 3-15%, and software/tech companies often have higher margins of 50-70%. Generally, 10% is considered average, 20% is good, and 30% or higher is excellent, but these numbers depend entirely on your industry and business model.