Margin Calculator
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A Margin Calculator helps you measure profitability and set pricing with confidence. Whether you sell products, services, or manage ecommerce inventory, margin is one of the most important metrics in pricing strategy because it expresses profit as a percentage of the selling price. Many businesses also track markup, which expresses profit relative to cost—similar concept, different denominator.
This calculator is designed to solve the most common margin problems quickly:
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Find profit when you know cost and selling price
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Find margin percentage to check profitability and compare products
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Find markup percentage to understand price uplift over cost
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Find selling price (revenue) when you have a target margin and known cost
Core formulas used in margin calculations are standard across leading finance resources:
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Profit = Revenue − Cost
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Profit Margin (%) = (Profit ÷ Revenue) × 100
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Markup (%) = (Profit ÷ Cost) × 100
If you’ve ever tried to “add 20%” and ended up with the wrong outcome, you’re not alone—this is usually a margin vs markup mix-up. Margin is based on selling price, while markup is based on cost. That difference can materially change pricing decisions and profitability, especially at scale.
Use this Margin Calculator when you want to:
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Validate product pricing before launching or discounting
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Compare profitability across SKUs, services, or projects
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Set a selling price from cost based on a desired margin
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Improve decision-making around promotions and fees (shipping, payment charges, platform commissions)
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