Margin vs markup — the classic mix-up
Both describe the same dollar profit from different denominators. Pricing a 50% margin using a 50% markup quietly undercharges you; a 50% margin requires a 100% markup.
Profit Margin Calculator
Gross margin, markup and profit per unit from cost and selling price.
Enter your details and press Calculate to see results.
Formula
margin = (price − cost) ÷ price × 100 · markup = (price − cost) ÷ cost × 100
Example
$40 cost sold at $100 → $60 profit, 60% margin, 150% markup. Same deal, different bases.
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Frequently asked questions
What's a healthy margin?
It varies enormously by industry — grocery runs single digits, software can exceed 80%. Benchmark against your sector, not a universal rule.
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