What is the difference between margin and markup?

Margin is profit divided by revenue (selling price). Markup is profit divided by cost. For the same product, markup % will always be higher than margin % because the denominator (cost) is smaller than revenue.

What is a good profit margin?

It depends on the industry. SaaS companies typically achieve 60-80% gross margins. Retail averages 20-50%. Manufacturing is 10-30%. Service businesses often see 30-60%.

How do I calculate gross vs net profit margin?

Gross profit margin = (Revenue - Cost of Goods Sold) / Revenue × 100. Net profit margin = Net Income (after all expenses including operating costs, taxes, interest) / Revenue × 100.

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Profit Margin & Markup

Calculate gross profit margin, markup percentage, and selling price from cost and revenue. Includes markup vs margin explainer and industry benchmarks.

Revenue (selling price)

Cost (COGS)

Target Margin %

Cost (COGS)

Markup %

Margin vs Markup — what's the difference?
Margin % = Profit ÷ Revenue × 100 | Markup % = Profit ÷ Cost × 100
Example: Cost $60, Price $100, Profit $40 → Margin = 40%, Markup = 66.7%. Same product, different numbers — because margin uses the larger denominator (revenue).

Results

Gross Profit

—

Revenue − Cost

Profit Margin

—

Profit ÷ Revenue × 100

Markup %

—

Profit ÷ Cost × 100

Cost Ratio

—

Cost ÷ Revenue × 100

Selling Price

—

Cost ÷ (1 − Margin%)

Gross Profit

—

Price − Cost

Markup %

—

Profit ÷ Cost × 100

Cost Ratio

—

Cost ÷ Price × 100

Selling Price

—

Cost × (1 + Markup%)

Gross Profit

—

Price − Cost

Profit Margin %

—

Profit ÷ Price × 100

Cost Ratio

—

Cost ÷ Price × 100

Industry Gross Margin Benchmarks

SaaS / Software 60 – 80% margin

Services 30 – 60% margin

Retail 20 – 50% margin

Manufacturing 10 – 30% margin

How to use

Pick a mode: Rev → Margin to analyse existing prices, or one of the Cost-based modes to set a price from a target margin or markup.
Type the numbers — every field updates in real time, no submit button.
The margin card is colour-coded (green >20%, amber 10–20%, red <10%); compare against industry benchmarks below.

FAQ

Margin is profit divided by revenue. Markup is profit divided by cost. Because cost is always less than revenue, the markup percentage will always be higher than the margin percentage for the same product. Example: cost $60, price $100, profit $40 → 40% margin but 66.7% markup.

It varies by industry. SaaS/software typically achieves 60–80% gross margins. Retail sits around 20–50%. Manufacturing is generally 10–30%. Service businesses can reach 30–60%. Compare against your specific industry rather than a universal standard.

Gross profit margin = (Revenue − COGS) ÷ Revenue × 100. Net profit margin = Net Income (after operating expenses, interest, and taxes) ÷ Revenue × 100. This tool calculates gross margin — subtract your overhead separately to get net.