Profit Margin Calculator

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Understanding Margins vs Markup

What is Profit Margin?

Profit margin is your profit divided by your total revenue. It tells you how much of every dollar you take in is actually kept as profit. For example, a 20% margin means you keep $0.20 for every $1 of sales.

What is Markup?

Markup is the percentage added to the cost of a product or service to arrive at its selling price. If an item costs $100 and you sell it for $150, your markup is 50% ($50/$100), but your margin is 33.3% ($50/$150).