What is the difference between margin and markup?

Margin is profit as a percentage of revenue: (Revenue − Cost) / Revenue. Markup is profit as a percentage of cost: (Revenue − Cost) / Cost. The same dollar profit produces a smaller margin percentage than markup percentage (e.g. 50% markup = 33.3% margin).

How do I price for a 40% margin?

Use compute-revenue-from-margin mode and set target margin to 40. The formula is: Revenue = Cost / (1 − Margin/100). At $60 cost: 60 / 0.6 = $100 selling price.

Why can't margin be 100%?

100% margin would mean profit equals revenue, which only happens when cost is zero. As cost approaches zero, margin approaches but never reaches 100%.

Is this gross or net margin?

Gross. It does not account for operating expenses, taxes, or interest. To estimate net profit margin, subtract those items from gross profit before dividing by revenue.

Margin & Markup Calculator

Free margin and markup calculator. Enter cost and revenue to compute profit, gross margin percentage, and markup percentage. Or pick a mode to derive the revenue (selling price) needed to achieve a target margin or markup, given the cost.

Calculate profit, profit margin %, and markup % — or back out the price needed to hit a target margin or markup.

Margin% = \frac{R - C}{R} \times 100, Markup% = \frac{R - C}{C} \times 100

Related calculators

Break-Even Calculator

Find the sales volume where total revenue equals total cost — your break-even point.

ROI Calculator

Calculate your return on investment, annualized ROI (CAGR), and investment multiple.

Discount Calculator

Calculate sale price, savings, and final price after discount and tax.

Compound Interest Calculator

Calculate how your savings grow over time with compound interest and regular contributions.