Why margin matters
Margin represents the percentage of revenue that remains after subtracting the cost of goods sold. A higher margin indicates better profitability and stronger pricing power.
Calculate cost, revenue, profit, and profit margin instantly with responsive inputs, clear results, and smart live formulas.
Profit Margin is the percentage of revenue remaining as profit after costs. Markup is the percentage added to cost to reach selling price. Enter any two values to calculate the rest.
Example: Cost $100, Price $150 = Margin 33.3%, Markup 50%
Margin represents the percentage of revenue that remains after subtracting the cost of goods sold. A higher margin indicates better profitability and stronger pricing power.
Profit margin is the percentage of revenue left after costs are deducted. It shows how efficiently a business turns sales into profit.
Margin is calculated as profit divided by revenue, multiplied by 100.
Margin is based on revenue, while markup is based on cost. A 50% margin is not the same as a 50% markup.
It depends on the industry. Retail businesses often target lower margins, while software and services businesses may aim for much higher ones.