Profit Margin Calculator
Optimize your pricing strategy. Calculate margin, markup, and profit.
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Margin vs Markup: What's the Difference?
Many business owners confuse Margin and Markup. While both deal with profit, they calculate it differently relative to cost and revenue.
Profit Margin
Percentage of selling price that is profit.
Formula: (Profit / Revenue) × 100
Markup
Percentage added to cost price.
Formula: (Profit / Cost) × 100
Frequently Asked Questions
Which is better: Margin or Markup?
Retailers usually focus on Markup to set prices, while investors look at Margin to assess profitability.