Margin Calculator
Calculate gross profit margin, markup percentage, and break-even price.
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๐ก Expert Tips
Margin and markup are different โ do not confuse them.
Gross margin 50%+ is typically healthy for services.
How to read your result
Margin (profit as a percentage of selling price) and markup (profit as a percentage of cost) are easy to confuse but give different numbers for the same transaction โ a 50% markup on cost is only a 33% margin on the selling price, which matters a lot when setting or comparing prices.
โ ๏ธ Common Mistakes
โ Using markup and margin interchangeably when setting prices.
โ A 50% markup on cost and a 50% margin on selling price require different selling prices for the same cost โ confusing the two is a common and costly pricing mistake.
โ Not accounting for all costs (not just direct product cost) when calculating true margin.
โ Shipping, payment processing fees, returns, and overhead all eat into real margin โ a calculation based on product cost alone overstates actual profitability.
Frequently Asked
Difference between margin and markup?โพ
Margin is profit/revenue. Markup is profit/cost. A 50% markup gives only 33% margin.
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A = 1,00,000 ร (1.10)^10 โ โน2,59,374 โ more than 2.5ร growth