Profit Margin Calculator
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Markup is the percentage added to cost to determine the selling price. Margin is the profit as a percentage of the selling price. They are closely related but not the same — a 50% markup gives only a 33.3% margin.
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Tip: Retailers typically mark up 50–100%. Restaurants often mark up food 300%+. Electronics and software can have margins over 70%.
- 1Selling price = Cost × (1 + Markup%/100)
- 2Markup% = (Selling price − Cost) / Cost × 100
- 3Margin% = (Selling price − Cost) / Selling price × 100
- 4Convert: Margin = Markup / (1 + Markup)
Cost $60, markup 50%=Sell $90, margin 33.3%$30 profit on $90 = 33.3%
Cost $100, markup 100%=Sell $200, margin 50%$100 profit on $200
| Markup % | Margin % | Selling price on $100 cost |
|---|---|---|
| 10% | 9.1% | $110 |
| 20% | 16.7% | $120 |
| 25% | 20% | $125 |
| 33% | 24.8% | $133 |
| 50% | 33.3% | $150 |
| 100% | 50% | $200 |
| 200% | 66.7% | $300 |
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