Margin Calculator

Calculate profit margin, markup, and selling price. Convert between margin and markup percentages for pricing and profitability analysis.

Margin Results

Profit Margin

30.00%

Markup

42.86%

On cost

Profit$30
Cost$70
Revenue$100

Calculation Mode

Values

11,000
11,000

Price Breakdown

Cost

$70

70.0%

Profit

$30

30.0%

Revenue

$100

100%

Formulas

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%

Margin ↔ Markup Conversion

MarginMarkupMarginMarkup
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%

Industry Margin Benchmarks

IndustryGross MarginNet Margin
Software/SaaS70-90%15-25%
E-commerce40-60%5-10%
Retail25-35%2-5%
Restaurants60-70%3-9%
Manufacturing25-35%5-10%
Professional Services50-70%10-20%

Quick Answer

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.

Key Facts

  • Margin formula: (Revenue - Cost) / Revenue × 100
  • Markup formula: (Revenue - Cost) / Cost × 100
  • Margin is always lower than markup for the same profit
  • 50% markup = 33.3% margin (not the same!)
  • 100% markup = 50% margin
  • Healthy retail margins: 20-50% depending on industry
  • Gross margin excludes operating costs; net margin includes all costs

Frequently Asked Questions

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.