Profit, Margin and Markup Calculator

This online calculator will help you calculate markup, margin, and net profit. Perfect for entrepreneurs, online stores, and freelancers.

Result:

Profit:

$0

Margin:

0%

Markup:

0%

How do we make calculations?

The profit from the product is the difference between the price you set on your offline or online store, or on any other platform where you plan to sell.

Margin is a profitability indicator that reflects the share of profit from the sale of a product as a percentage of its final price. In simple terms, the margin shows how much money is left after covering the costs of producing or purchasing the goods.

Markup is the amount or percentage by which the initial cost of a product is increased to form its retail price. It indicates the additional income a company receives from the sale of goods.

The difference between margin and markup Although these concepts are interrelated, they have significant differences:

  • The margin is calculated from the final price of the product.
  • The markup is calculated from the initial (cost) price of the goods.

Formula for calculating the margin:

Margin = Selling price - Cost / Selling price * 100

Formula for calculating the markup:

Markup = Selling price - Cost / Cost * 100

How to calculate the margin correctly?

To avoid mistakes, you should:

  1. Accurately calculate the cost of goods, taking into account all costs (logistics, packaging, taxes).
  2. Use the correct formula depending on the task (margin or markup).

Note

Please note that our calculations do not take into account sales costs and taxes, as these aspects vary greatly depending on many factors, including the laws of the country where you plan to do your business.

Conclusions

Margins and markups are key indicators for assessing business profitability. Understanding the difference between them, using the right formulas, and taking into account industry norms will help you optimize pricing and increase profits.

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