Margin Calculator

Calculate profit margin as a percentage of selling price. Essential for pricing and profitability.

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Profit Margin
Profit
Markup
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What Is Margin?

Profit margin is the percentage of selling price that is profit. It measures how much of each dollar of revenue a company keeps as profit.

Formula

Margin = (Selling Price − Cost) / Selling Price × 100%

Example

If cost is $60 and selling price is $100: Margin = ($100 − $60) / $100 = 40%.

Frequently Asked Questions

What's the difference between margin and markup?

Margin is profit as % of selling price. Markup is profit as % of cost. A 50% markup = 33.3% margin.

What's a good profit margin?

Varies by industry. Retail: 3-5%. Software/SaaS: 70-90%. Service businesses: 15-25%.

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