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Profit Margin Calculator

Calculate gross profit margin, required selling price, and understand the difference between margin and markup.

Margin (%) = ((Price − Cost) ÷ Price) × 100

Price = Cost ÷ (1 − (Margin% ÷ 100))

Margin is profit as a % of revenue. Markup is profit as a % of cost. They look similar but are mathematically different!

Resulting Margin:
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Resulting Markup:
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What is the Profit Margin Calculator?

The Profit Margin Calculator helps you price your products correctly by calculating gross profit, margin percentage, and markup.

How to Use It

Enter your cost of goods sold (COGS) and your selling price. The tool will calculate your margin and explain the critical difference between margin and markup.

Why It's Important for Marketing

Confusing margin with markup is a common business mistake that destroys profitability. This tool ensures you price products to cover your marketing costs and maintain healthy margins.