Margin vs Markup
Margin = (Revenue - Cost) / Revenue. Markup = (Revenue - Cost) / Cost. If you buy for $65 and sell for $100, your margin is 35% but your markup is 53.8%. They measure the same profit from different perspectives.
Related Calculators
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A 50% markup is only a 33% margin.
What is a good profit margin?
It varies by industry. Retail: 2-5%. SaaS: 70-90%. Restaurants: 3-9%. Manufacturing: 10-20%.