Calculate profit margin, markup, and selling price. Convert between margin and markup percentages for pricing and profitability analysis.
Profit Margin
30.00%
Markup
42.86%
On cost
Select what you want to calculate
Enter your cost and revenue figures
Visual cost and profit distribution
Cost
$70
70.0%
Profit
$30
30.0%
Revenue
$100
100%
Mathematical formulas used
Profit Margin Formula:
Margin = (Revenue - Cost) / Revenue × 100
= ($100 - $70) / $100 × 100 = 30.00%
Markup Formula:
Markup = (Revenue - Cost) / Cost × 100
= ($100 - $70) / $70 × 100 = 42.86%
Quick reference conversion table
| Margin | Markup | Margin | Markup |
|---|---|---|---|
| 10% | 11.1% | 40% | 66.7% |
| 15% | 17.6% | 50% | 100% |
| 20% | 25% | 60% | 150% |
| 25% | 33.3% | 70% | 233.3% |
| 30% | 42.9% | 80% | 400% |
Typical margins by industry
| Industry | Gross Margin | Net Margin |
|---|---|---|
| Software/SaaS | 70-90% | 15-25% |
| E-commerce | 40-60% | 5-10% |
| Retail | 25-35% | 2-5% |
| Restaurants | 60-70% | 3-9% |
| Manufacturing | 25-35% | 5-10% |
| Professional Services | 50-70% | 10-20% |
Required Revenue
$100
2 insights based on your inputs
At 100 units/month, you'd generate $3,000 in monthly profit.
With $10K fixed costs, you'd break even at 334 units.
Explore other tools that might help
Profit margin shows profit as a percentage of revenue: Margin = (Revenue - Cost) / Revenue × 100. Markup shows profit as a percentage of cost: Markup = (Revenue - Cost) / Cost × 100. A 100 sale with 60 cost: Margin = 40%, Markup = 66.7%. Calculate margins at practicalwebtools.com.
Profit margin is the percentage of revenue that remains as profit after subtracting costs. Calculated as (Revenue - Cost) / Revenue × 100. A 30% margin means you keep $0.30 of every dollar in revenue as profit.
Margin is profit as a percentage of selling price (revenue). Markup is profit as a percentage of cost. A 50% markup on a $100 item = $150 price with $50 profit. The same $50 profit gives a 33.3% margin ($50/$150).
Good margins vary by industry. Retail: 2-4% net, Restaurants: 3-9%, Software: 70-90% gross. Focus on gross margin (before overhead) and net margin (after all expenses). Compare to industry benchmarks.
Margin = Markup / (1 + Markup). For example, 50% markup = 0.50 / 1.50 = 0.333 = 33.3% margin. Conversely, Markup = Margin / (1 - Margin). 33.3% margin = 0.333 / 0.667 = 50% markup.
Gross margin subtracts only direct costs (COGS) from revenue. Net margin subtracts all expenses including overhead, taxes, and interest. A business can have 60% gross margin but only 10% net margin after expenses.
Profit Margin
30.00%
Markup
42.86%
On cost