What is the difference between Margin and Markup?

Margin is (Revenue - Cost) / Revenue. Markup is (Revenue - Cost) / Cost. They use the same inputs but reflect different percentage views.

How do I calculate 20% margin?

To get a 20% margin, divide your cost by 0.8 (1 - 0.20). Cost / 0.8 = Selling Price.

Is this useful for services?

Yes, it works effectively for service pricing if you know your hourly cost or project cost.

Margin Calculator

Margin Calculator Overview

Calculate gross margin, markup, and profit

Easily calculate Gross Margin, Markup, and Profit based on Cost and Revenue. Essential for businesses to determine the correct selling price for products or services to achieve desired profit margins.

How to Use Margin Calculator

Enter the Cost of the item
Enter the Revenue (Selling Price) OR desired Margin %
Instantly see Gross Margin, Markup %, and Net Profit
Use it to set prices effectively

Frequently Asked Questions

What is the difference between Margin and Markup?: Margin is (Revenue - Cost) / Revenue. Markup is (Revenue - Cost) / Cost. They use the same inputs but reflect different percentage views.
How do I calculate 20% margin?: To get a 20% margin, divide your cost by 0.8 (1 - 0.20). Cost / 0.8 = Selling Price.
Is this useful for services?: Yes, it works effectively for service pricing if you know your hourly cost or project cost.

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