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