Margin and Markup Calculator FREE
Margin is profit over revenue; markup is profit over cost. Both are here, side by side, so the two stop being confused for each other.
Margin and markup
Margin is profit over revenue. Markup is profit over cost. Both from one cost and one price, side by side, so the two stop being confused for each other.
How this is calculated
Margin is profit over revenue. Markup is profit over cost. They are different denominators, not two words for the same thing: buy at 100 and sell at 150 and you have a 50% markup and a 33.33% margin.
Both are shown together from one cost and one price, which is the whole point of this calculator. Confusing them is the most expensive arithmetic mistake in small business pricing, and it happens because most tools show one number and call it "profit".
The companion calculator works backwards: give it a cost and the margin or markup you want, and it gives you the price that achieves it.
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