Question 1

What's the difference between margin and markup?

Accepted Answer

Margin is profit relative to selling price, while markup is profit relative to cost. The two numbers differ even for the same profit.

Question 2

How is margin calculated?

Accepted Answer

Margin (%) = (Selling price − Cost) / Selling price × 100.

Question 3

How is markup calculated?

Accepted Answer

Markup (%) = (Selling price − Cost) / Cost × 100.

Question 4

Can I calculate the selling price for a target margin?

Accepted Answer

Yes, the tool supports a reverse calculation: enter the cost and your desired margin to find the required selling price.

Question 5

Is it suitable for calculating profit on services?

Accepted Answer

Yes, the formula is universal for both goods and services — just enter cost and price.

Profit Margin Calculator

How to use it