Profit Margin Calculator
Gross profit and margin % from revenue and cost.
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About this calculator
Margin measures profit against selling price; markup measures it against cost. A '50% margin' business runs a 100% markup — mixing these up is among the most common pricing mistakes in small business.
Formula
Margin % = (Revenue − Cost) ÷ Revenue × 100
Frequently Asked Questions
What is a healthy margin?
Varies wildly: grocery retail 2–5%, software 80%+. Compare against industry peers, not absolute numbers.
Margin vs markup example?
Buy at ₹60, sell at ₹100: margin = 40/100 = 40%; markup = 40/60 ≈ 66.7%. Both describe the same deal.