๐ฐ FinancebeginnerOffline
Profit Margin
Profit margin %, markup, and gross/net profit calculations.
Inputs
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Result
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Enter values and press Calculate โ the result appears here.
How it works
The formula behind this calculator.
margin = (revenue โ cost) / revenue ร 100; markup = (revenue โ cost) / cost ร 100
- revenue
- Selling price
- cost
- What you paid
Margin is profit as a share of the sale price. Markup is profit as a share of the cost. They sound similar but differ significantly.
Example: Cost $60, sold at $100: margin = 40%, markup = 67%
Ref: Accounting basics
Tips
- ๐ก Margin and markup are different: margin = profit / revenue, markup = profit / cost.
- ๐ก A 50% margin means 50ยข of every dollar is profit, not 50% off the price.