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💰 Finance

Margin & Markup Calculator

Calculate profit margin and markup percentages based on cost and revenue.

⚡ Instant 🆓 Free 🔒 Private
margin markup profit business finance

Profit Margin

0%

Markup

0%
Gross Profit per Unit 0

Margin vs. Markup: Knowing the Difference

Many business owners confuse Margin and Markup, but they are very different metrics. Understanding the distinction is critical for pricing your products correctly and maintaining profitability.

Profit Margin

Margin is the percentage of revenue that is profit.

(Profit / Revenue) × 100

Markup

Markup is the percentage added to the cost to get the price.

(Profit / Cost) × 100

Example Case

If you buy a product for $100 and sell it for $150:

  • Your Profit is $50.
  • Your Markup is 50% ($50 is 50% of $100).
  • Your Margin is 33.3% ($50 is 33.3% of $150).
Key Rule: Markup is always higher than Margin. To achieve a 50% margin, you actually need a 100% markup!