Inputs

Results update as you type. The link in the address bar keeps the inputs so you can share it.

Revenue split (the values are listed below)
  • Cost$60.00
  • Profit$40.00

What this means

  • Profit is $40.00. Margin is 40.00% of revenue. Markup is 66.67% of cost.
  • Margin and markup describe the same profit with different bases. A 40% margin is not a 40% markup.

What if

Cost 10% lower Keep the other input and cut cost by 10%. Profit becomes $46.00, and margin becomes 46.00%.
Revenue 10% higher Raise revenue and keep cost. Profit becomes $50.00, and markup becomes 83.33%.

About this calculator

What this calculator does

It reports profit, margin percent, and markup percent. You can start from cost and revenue, or from cost and a target margin. The second mode solves the revenue you would need.

How it is calculated

Profit is revenue minus cost. Margin divides that profit by revenue. Markup divides it by cost:

margin = (revenue - cost) / revenue * 100

markup = (revenue - cost) / cost * 100

If you know the margin instead of the revenue:

revenue = cost / (1 - margin / 100)

Margin and markup

They are not the same percent. A cost of 60 and a revenue of 100 produce a profit of 40. Margin is 40 / 100, or 40%. Markup is 40 / 60, or 66.67%. Same dollars, different base.

Assumptions and limits

The numbers are for one cost and one revenue. Overhead, taxes, and payment fees are included only if you put them in the cost. This is an educational estimate, not financial, tax, or lending advice.

Sources and method

Standard arithmetic with no outside data. The formula is shown under How it is calculated, and unit tests check worked examples, including edge cases.

This page uses arithmetic only, with no outside data.

Questions

Why is markup higher than margin?

Markup divides profit by the smaller base, the cost. Margin divides profit by revenue, which includes the profit.

Can margin be 100%?

Only if cost is zero. The target-margin mode stops below 100% because the revenue formula would divide by zero.

What if revenue is below cost?

Profit, margin, and markup are negative. That is a loss, not an error.

Should I put fees in the cost?

Yes, if you want them in the profit. The calculator does not add fees on its own.

Is this an accounting statement?

No. It is an educational estimate for one cost and one revenue figure.