# Applications - Margin and Markup Calculator

## MARGIN AND MARKUP CALCULATOR.

This calculator shows how to calculate the profit, profit margin, markup percentage given a specific unit cost and unit price. You can change any of the values below, and this will auto-update all other inputs.

### how to calculate margin and margin percentage?

To calculate the Margin for a product or service that you sell, divide the Profit you make per unit by your Revenue and multiply it by 100 to express it as a percentage. Here is the formula: Margin Percentage = 100 * (Revenue - Cost) / Revenue. For example, if you sell a product for €10, and the cost to produce it is €3, then your Profit is €10 - €3 = €7, and your Margin Percentage is €7 / €10 * 100 = 70%

### how to calculate markup and markup percentage?

To calculate the Markup for a product or service that you sell, divide the profit you make per unit by your unit cost and multiply it by 100 to express it as a percentage. Here is the formula: Markup in % = 100 * (Revenue - Cost) / Cost. For example, if you sell a product for €10, and the cost to produce it is €3, then your Profit is €10 - €3 = €7, and your Markup percentage is €7 / €3 * 100 = 233%

### what is the difference between margin and markup?

Margin expresses the profit made per sale (usually calculated as a percentage) and thus Margin can never exceed 100%. Markup expresses the amount by which the cost is increased on a product or service to arrive at the selling price (usually calculated as a percentage).

## CREDITS & REFERENCES

For the avoidance of doubt, Neos Chronos is not affiliated with and has no financial interest in any of the companies mentioned in this article. All names and trademarks mentioned herein are the property of their respective owners. Please observe the Neos Chronos Terms of Use.

- Wikipedia: Profit Margin, Markup
- Other tools: Equity Dilution Calculator, Sales Revenue Target Calculator

## INTRIGUED?

For more information on how our advisory services can help you reach your revenue targets, please contact us to arrange an introductory meeting or

Book a Discovery Session now!

Get to know us. Put us to the test.