Margin Calculator
Margin Calculator
Profitability Analysis
Total for 100 Units
How it works: Margin and markup are different ways to measure profitability. Margin = (Selling Price - Cost) / Selling Price × 100%. Markup = (Selling Price - Cost) / Cost × 100%. Margin shows profit as a percentage of selling price, while markup shows profit as a percentage of cost. A 50% markup equals a 33.3% margin. Use margin for pricing decisions and markup for cost-based pricing.
Overview
Essential business calculator for analyzing profitability and pricing strategies. Calculate profit margins, markups, and analyze the relationship between costs, prices, and profits. Perfect for business owners, pricing decisions, and profitability analysis.
About
Margin Calculator
Professional calculator for profit margin analysis and pricing strategy evaluation.
Features:
- Calculate profit margins and markups
- Analyze pricing from cost or margin
- Evaluate business profitability
- Compare different pricing scenarios
- Understand margin vs markup relationships
FAQ
What's the difference between margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin.
How do I calculate profit margin?
Margin = (Selling Price - Cost) ÷ Selling Price × 100%. It shows what percentage of revenue is profit.
What's a good profit margin?
Good margins vary by industry. Generally, 10-20% is average, 20%+ is excellent. Service businesses often have higher margins than retail.
How does margin affect pricing decisions?
Margin helps ensure profitability. Calculate required selling price from desired margin, or analyze profitability of current prices.
Should I focus on margin or markup?
Use margin for understanding profitability and financial analysis. Use markup for setting prices based on costs. Both are important for different decisions.