Calculate sale price, profit, margin and markup — see the full breakdown instantly.
Did you know?Margin = Profit ÷ Revenue × 100 (profit as % of selling price). Markup = Profit ÷ Cost × 100 (profit as % of cost). Example: cost €40, price €100 → margin 60%, markup 150%.
Margin vs markup — the key difference
- Margin is profit as a percentage of the selling price.
- Markup is profit as a percentage of the cost.
- A 50% margin is not the same as a 50% markup — confusing the two is one of the most common pricing mistakes.
The formulas
Margin: Profit ÷ Revenue × 100. So if cost is €40 and price is €100, margin is €60 ÷ €100 = 60%.
Markup: Profit ÷ Cost × 100. Same example: €60 ÷ €40 = 150% markup.
FAQ
What is a good profit margin?
It varies by industry. Retail typically runs 20-50%. Software and digital products can exceed 70%. Services often target 50-70%.
What is the difference between margin and markup?
Margin is profit divided by revenue. Markup is profit divided by cost. A 50% markup equals a 33% margin — confusing them is a common pricing mistake.
How do I set a price to hit a target margin?
Price = Cost ÷ (1 - desired margin). For a 60% margin on a €40 cost: €40 ÷ 0.40 = €100.