Free Margin Calculator - Calculate Profit Margins
Calculate gross margin, markup percentage, and profit instantly. Best free margin calculator 2025 for pricing decisions and profitability analysis.
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 about Margin Calculator:
- 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
Why Use Our Margin Calculator?
Complete margin analysis:
Margin Calculation
Calculate profit margin from cost and price.
Markup Calculation
Calculate markup percentage.
Margin ↔ Markup
Convert between margin and markup.
Price Calculator
Find price needed for target margin.
Instant Results
Get calculations immediately.
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Your business data stays private.
How to Margin Calculator in 3 Easy Steps
Calculate your margins:
Enter Cost
Your cost to acquire/produce.
Enter Price
Selling price or target margin.
See Results
View margin, markup, and profit.
Price for Profitability
Understand your true profit margins
Set prices to achieve target profitability
Avoid the margin vs markup confusion
Make informed pricing decisions
Common Use Cases for Margin Calculator
Essential for:
Frequently Asked Questions
Everything you need to know about our margin calculator
What is the difference between margin and markup?
Margin = profit/price; Markup = profit/cost. Same profit, different %.
Margin is profit as % of selling price. Markup is profit as % of cost. Same $40 profit: on $100 sale = 40% margin; on $60 cost = 66.7% markup.
How do I calculate profit margin?
(Price - Cost) / Price × 100. $100 price, $70 cost = 30% margin.
Margin = (Price - Cost) / Price × 100. For $100 price, $70 cost: ($100-$70)/$100 × 100 = 30% margin.
What is a good profit margin?
Varies: Retail 20-50%, Software 70-90%, Restaurants 3-9%.
Varies by industry. Retail: 20-50%, Software: 70-90%, Restaurants: 3-9%, Manufacturing: 10-25%. Compare to your industry benchmarks.
How do I convert margin to markup?
Markup = Margin / (1 - Margin). 40% margin = 66.7% markup.
Markup = Margin / (1 - Margin). For 40% margin: 0.40 / (1 - 0.40) = 0.40 / 0.60 = 66.7% markup.
Still have questions? Try the tool yourself!
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