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Calculate your gross margin, profit, and markup percentage instantly.
Gross Margin = ((Revenue - Cost) / Revenue) × 100. Markup = (Profit / Cost) × 100.
Result: Margin: 50%, Profit: $50.00, Markup: 100%
Margin is percentage of revenue, markup is percentage of cost. A 50% margin equals 100% markup.
It varies by industry. Retail margins range 20-50%, while services can be 60-80%.
Margin percentage tells you the efficiency of your pricing strategy relative to revenue, while profit dollars alone do not reveal how well you are managing costs.
A 20% discount requires roughly 25% more sales volume just to maintain the same gross profit dollars, significantly impacting your bottom line profitability.
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