Margin Calculator
Calculate profit margin and markup percentage from cost and revenue.
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How it works
The Margin Calculator computes both gross margin (profit as a percentage of revenue) and markup (profit as a percentage of cost) — two related but different metrics often confused in pricing decisions.
Formula
Margin% = (Revenue − Cost) / Revenue × 100
Profit as a percentage of the selling price.
Markup% = (Revenue − Cost) / Cost × 100
Profit as a percentage of the cost price.
Frequently asked questions
Why is markup always higher than margin?
Because markup divides profit by the smaller number (cost) while margin divides by the larger number (revenue), for the same profit amount.