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Find answers to common questions about margin, markup, and how to use our calculator.
Margin (or gross margin) is sales minus the cost of goods sold, divided by sales. It shows the percentage of revenue you keep as gross profit. Markup is the amount by which the cost of a product is increased in order to derive the selling price. It shows the percentage of cost you add to get the price.
To calculate profit margin, subtract the cost from the revenue to get the gross profit. Then, divide the gross profit by the revenue and multiply by 100 to get the percentage. Formula: Margin = ((Revenue - Cost) / Revenue) * 100.
To calculate markup, subtract the cost from the revenue to get the gross profit. Then, divide the gross profit by the cost and multiply by 100 to get the percentage. Formula: Markup = ((Revenue - Cost) / Cost) * 100.
Margin is always lower than markup because margin is calculated as a percentage of the higher selling price (revenue), while markup is calculated as a percentage of the lower cost. For example, a 100% markup results in a 50% margin.
Yes, the Markup & Margin Calculator provided by Dapplesoft is completely free to use. There are no hidden fees, subscriptions, or login requirements.
Yes! You can export your calculation results as a high-quality PNG image or a PDF document using the download buttons below the result card.
Your privacy is important to us. All calculations are performed locally in your web browser. We do not store, track, or transmit your financial data to any servers.
Yes, you can easily toggle the 'Show Branding' switch below the result card to remove the Dapplesoft branding before exporting your PNG or PDF.
A 'good' profit margin varies significantly by industry. Generally, a 10% net profit margin is considered average, a 20% margin is considered high (or 'good'), and a 5% margin is low. However, high-volume businesses like grocery stores often operate on much lower margins.
If you know your cost and your desired margin or markup, simply enter those two values. The calculator will instantly determine the revenue (selling price) you need to set to achieve that profitability.