What is the difference between margin and markup?
Margin is profit divided by revenue, while markup is profit divided by cost.
Free Profit Margin Calculator
Enter cost and revenue to calculate profit amount and margin percentage.
Profit Margin Calculator
Calculate gross profit and margin percentage.
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How to Use
- Choose a mode: cost+revenue, cost+target margin, or revenue+target margin.
- Enter required values and choose your currency for output labels.
- Run calculation to review profit, margin, markup, and break-even revenue.
Workflow Notes
- Margin and markup are different metrics; this tool reports both.
- Target-margin modes help back-calculate price or cost quickly.
- Use the output to validate pricing decisions before publishing rates.
Common Use Cases
- Validate pricing decisions before publishing rates.
- Back-calculate selling price from target margin goals.
- Estimate allowable cost for a target revenue and margin.
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FAQ
Can I calculate revenue from cost and target margin?
Yes. Use the cost+target margin mode to estimate required selling price.
Can I calculate cost from revenue and target margin?
Yes. Use the revenue+target margin mode to estimate allowable cost.