Margin Calculator
Calculate profit margin and markup percentage
Understanding Margin vs Markup
Profit Margin is the percentage of selling price that is profit. Markup is the percentage added to the cost price to get the selling price.
Formulas
- Profit: Selling Price - Cost Price
- Profit Margin: (Profit / Selling Price) × 100
- Markup: (Profit / Cost Price) × 100
FAQs
Q: What's the difference between margin and markup?
A: Margin is calculated as a percentage of selling price, while markup is calculated as a percentage of cost price.
Q: What is a good profit margin?
A: It varies by industry, but generally 10% is average, 20% is good, and 25%+ is excellent.