Profit Margin Calculator
Calculate profit margin and markup from revenue and cost. Includes a margin-to-markup conversion table for quick reference.
Last updated: · Standard accounting formulas — no external data source required
With $100 revenue and $60 cost, your profit is $40, giving a 40% profit margin and 66.67% markup. Margin = (Revenue − Cost) / Revenue. Markup = (Revenue − Cost) / Cost. They are related but not the same.
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Margin vs. Markup
Margin = profit as a % of revenue (selling price).
Markup = profit as a % of cost.
A 50% markup = 33.3% margin. They are related but not the same.
Results
Profit
$40.00Profit Margin(Revenue − Cost) ÷ Revenue
40.0%Markup(Revenue − Cost) ÷ Cost
66.7%Cost
Profit
Margin ↔ Markup Conversion Table
| Margin | → | Markup |
|---|---|---|
| 10.0% | = | 11.1% |
| 15.0% | = | 17.7% |
| 20.0% | = | 25.0% |
| 25.0% | = | 33.3% |
| 30.0% | = | 42.9% |
| 33.3% | = | 50.0% |
| 40.0% | = | 66.7% |
| 50.0% | = | 100.0% |
| 60.0% | = | 150.0% |
| 75.0% | = | 300.0% |
How This Is Calculated
This calculator uses standard accounting formulas:
Profit = Revenue − CostMargin = Profit / Revenue × 100%Markup = Profit / Cost × 100%To convert between margin and markup:
Markup = Margin / (1 − Margin)Margin = Markup / (1 + Markup)Frequently Asked Questions
- What is a good profit margin?
- Profit margins vary widely by industry. Grocery stores average 1-3%, restaurants 3-9%, SaaS companies 70-90%, and consulting firms 15-25%. A 'good' margin depends on your industry, business model, and growth stage. Compare your margin to industry benchmarks rather than using a universal number.
- What is the difference between margin and markup?
- Margin is profit as a percentage of revenue (selling price): Margin = (Revenue - Cost) / Revenue. Markup is profit as a percentage of cost: Markup = (Revenue - Cost) / Cost. For example, buying at $60 and selling at $100 gives a 40% margin but a 66.7% markup. They describe the same profit from different perspectives.
- How do I convert margin to markup?
- Markup = Margin / (1 - Margin). For example, 40% margin = 0.40 / (1 - 0.40) = 0.40 / 0.60 = 66.7% markup. Conversely, Margin = Markup / (1 + Markup). 66.7% markup = 0.667 / (1 + 0.667) = 0.667 / 1.667 = 40% margin.