Percentage Calculator→Specialized Version

Margin Calculator

Calculate margins

Value

Of total

Margin Calculator

Calculate profit margins from cost and selling price. Essential for pricing, profitability analysis, and business planning.

Margin Formulas

| Type | Formula | Gross Margin %((Revenue - COGS) / Revenue) × 100 Net Margin %(Net Profit / Revenue) × 100 Markup %((Price - Cost) / Cost) × 100

Margin vs Markup

CostSelling PriceMarginMarkup $50$10050%100% $70$10030%43% $80$10020%25% | $60 | $100 | 40% | 67% |

Implementation

``javascript function calculateMargin(cost, sellingPrice) { const profit = sellingPrice - cost; const margin = (profit / sellingPrice) * 100; const markup = (profit / cost) * 100; return { profit, margin, markup }; }``

Industry Average Margins

| Industry | Typical Margin | Grocery2-3% Retail3-5% Software70-90% Restaurants3-9% Manufacturing5-10%

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit as a percentage of selling price: (Price - Cost) / Price. Markup is profit as a percentage of cost: (Price - Cost) / Cost. A 50% margin means you keep half the revenue. A 50% markup means you charge 1.5× your cost.

How do I convert markup to margin?

Margin = Markup / (1 + Markup). For 50% markup: 0.50 / 1.50 = 33.3% margin. For 100% markup: 1.00 / 2.00 = 50% margin.

What is a good profit margin?

It varies by industry. Software companies often have 70%+ margins. Grocery stores operate on 2-3%. A "good" margin beats your industry average and covers all operating expenses while leaving profit.