Revenue, cost → margin and markup.
These calculators use standard financial formulas (amortization, compound interest, marginal tax brackets) to estimate results based on the numbers you enter. They don't account for your full financial picture, and results shouldn't be treated as financial, tax, or investment advice. For decisions with real money on the line, check the numbers with a lender, accountant, or financial advisor who can see your complete situation.
Profit = Revenue − Cost. Margin = Profit / Revenue. Markup = Profit / Cost. Different ratios — don't confuse them.
50% margin corresponds to 100% markup. Retailers think markup; accountants think margin.
Confusing the two is a common pricing mistake — setting a '50% markup' price gives you only a 33.3% margin, not 50%, because markup is calculated on cost while margin is calculated on the higher revenue figure.
$100 revenue on $60 cost: $40 profit, 40.00% margin, 66.67% markup.
Margin for financial analysis — fraction of every sales dollar that is profit. Markup is useful when setting prices from cost.
Wildly industry-dependent. Grocery: 1–3%. Software: 70%+. Restaurants: 3–5%. Compare to industry benchmarks.
Gross margin only subtracts direct cost of goods sold. Net margin subtracts every expense — overhead, salaries, taxes, everything — and is always lower.