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Margin: -
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Margin Calculator
Calculate profit margin, markup, and selling prices for your business.
Calculate from Cost & Revenue
Calculate Selling Price
Selling Price: -
Profit: -
Equivalent: -
How the Margin Calculator Works
Understanding the difference between margin and markup is essential for pricing:
- Margin = (Revenue - Cost) / Revenue × 100
- Markup = (Revenue - Cost) / Cost × 100
For example, selling a $50 item for $75: Margin = 33.3%, Markup = 50%
Margin vs Markup Reference
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FAQ
- What is the difference between margin and markup?
- Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% markup equals a 33.3% margin.
- How do I calculate selling price from margin?
- Divide the cost by (1 - margin percentage). For example, with $50 cost and 30% margin: $50 / (1 - 0.30) = $71.43 selling price.
- What is a good profit margin?
- It varies by industry. Retail typically has 2-5% net margin, while software can have 70%+ gross margin. Research your industry benchmarks.