Margin vs Markup: Margin is profit as % of selling price. Markup is profit as % of cost. A 50% markup = 33.3% margin.
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Margin is profit as a percentage of selling price
Common Margins
How to Calculate Profit Margins
1
Enter Your Cost
Start by entering the cost of your product or service. This should include all direct costs like materials, production, or labor required to deliver it.
The calculator uses this amount as the base for all margin and markup calculations.
2
Choose a Calculation Method
Select whether you want to calculate based on a target margin (profit as a percentage of selling price), markup (profit as a percentage of cost), or selling price.
Each mode will compute the other values automatically.
3
Review Your Results
As you enter values, the calculator shows your profit, margin, markup, and selling price in real time.
Hover over the results for a visual breakdown of the calculation formulas used.
4
Copy or Export
Use the copy button to quickly paste results into a spreadsheet or document.
You can also export to CSV or PDF for pricing records, reports, or client quotes.
Frequently Asked Questions
What is the difference between margin and markup?
Both margin and markup measure profit, but they use different bases. Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. For the same dollar profit, the markup percentage will always be higher than the margin percentage.
How do I convert markup to margin?
Use the formula: Margin = Markup ÷ (1 + Markup). For example, a 50% markup gives you 50 ÷ 150 = 33.3% margin. The calculator does this conversion automatically—just enter your cost and one value, and the other will update in real time.
What is a good profit margin for my business?
Profit margins vary widely by industry. Retail often operates on net margins of 2–5%, restaurants around 3–9%, professional services 15–30%, and software/SaaS companies can exceed 70%. Research your industry benchmarks and factor in your overhead costs and competitive pricing when setting a target.
Is this profit margin calculator free?
Yes. The profit margin calculator is completely free. You can calculate margins for as many items as you need without signing up or paying anything.
Can I calculate margins for multiple items at once?
Yes. Switch to Multiple Items mode to add products or services individually. Enter the cost and target margin or markup for each item, and the calculator will display per-item results along with totals for cost, revenue, profit, and average margin.
How do I use this calculator to price my services?
Enter your total cost to deliver the service, including labor, materials, and overhead. Then set your desired margin or markup to see the selling price you should charge. For service businesses, factor in your time at a fair hourly rate as part of the cost.
What's the difference between gross margin and net margin?
Gross margin is calculated using only the direct cost of the product or service. Net margin factors in all other expenses, like rent, salaries, marketing, and taxes. This calculator focuses on gross margin—you'll need to account for additional overhead separately when assessing overall profitability.
Can I apply the same margin to multiple items automatically?
Yes. In Multiple Items mode, use the "Apply to All" feature to set the same margin or markup percentage across all items at once. This is useful when pricing a catalog of products with consistent profit targets.
Why does my margin look lower than expected?
A common reason is confusing margin with markup. If you expect a 50% margin but enter a 50% markup, your margin will only be 33.3%. Make sure you're using the correct input mode for your goal. The calculator clearly labels both so you can see the difference.
Is my data saved?
Yes. Your inputs are saved locally in your browser so they persist between visits. Nothing is uploaded to a server. If you clear your browser data, your saved values will be erased.
