Margin Calculator
Calculate profit margin, gross margin, and markup percentage for your products or services.
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How to Calculate
Margin = (Revenue - Cost) / Revenue × 100
Where Revenue = selling price of the product or service, Cost = cost of producing the product or service. The result is expressed as a percentage.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is the percentage of the selling price that is profit (profit ÷ revenue × 100). Markup is the percentage added to the cost to get the selling price (profit ÷ cost × 100). Margin is always less than markup for the same transaction.
What is a good profit margin?
It varies by industry. Retail typically has 2-5% net margin, restaurants 3-9%, software 15-25%, and consulting 15-30%. A margin above 10% is generally considered healthy.