Calculators
Margin Calculator
Calculate profit margin and markup from cost and selling price. Essential for pricing products, freelancing rates, and business planning.
Free · Runs in your browser · No signup · Files stay on your device
Profit
$40.00
Margin
40.00%
Markup
66.67%
How to use
How to use Margin Calculator
- 1Enter the cost (what you pay) of the product or service.
- 2Enter the selling price (revenue).
- 3The calculator shows profit, profit margin percentage, and markup percentage.
Tips
Quick tips
- Profit margin = (Revenue − Cost) / Revenue × 100. It shows what percentage of sales is profit.
- Markup = (Revenue − Cost) / Cost × 100. It shows how much you added on top of cost.
- A 50% margin is not the same as a 50% markup. 50% margin = 100% markup.
FAQ
Frequently asked questions
What is profit margin?
The percentage of revenue that is profit. Formula: (Revenue − Cost) / Revenue × 100. A $100 sale with $60 cost = 40% margin.
What is the difference between margin and markup?
Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. With $60 cost and $100 revenue: margin = 40%, markup = 66.7%.
What is a good profit margin?
It varies by industry. Retail: 2–5%. Software/SaaS: 60–80%. Restaurants: 3–9%. Services: 15–40%.
Can margin exceed 100%?
No. Margin approaches 100% as cost approaches zero, but can never reach it. Markup, however, can be any percentage above 0%.
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