What is the difference between margin and markup?
Margin uses selling price as the denominator; markup uses cost.
Profit Margin Calculator
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Exemple
An item costing $60 and selling for $100 has $40 profit, a 40% margin, and a 66.67% markup.
Méthode de calcul
Profit is revenue minus cost. Margin divides profit by revenue; markup divides profit by cost.
Remarques importantes
This simple calculation excludes overhead, taxes, payment fees, returns, and other business costs.
Questions fréquentes
Can profit be negative?
Yes. When cost exceeds revenue, profit and percentages can be negative.
Why is markup unavailable when cost is zero?
A percentage cannot divide by zero.