MyKit.tools

Profit Margin Calculator

Calculate profit margin and markup from revenue and cost. Understand the difference between margin and markup with clear explanations

Gross Profit

£0.00

Profit Margin

0.00%

Markup

0.00%

Cost as % of Revenue

NaN%

Detailed Breakdown

Revenue:£0.00
Cost of Goods Sold:£0.00
Gross Profit:£0.00

Understanding Margin vs Markup

Profit Margin

Profit divided by revenue. Shows what percentage of each pound of revenue is profit.

Margin = (Profit ÷ Revenue) × 100

Markup

Profit divided by cost. Shows how much you've added to your cost to reach the selling price.

Markup = (Profit ÷ Cost) × 100

Key Difference

Markup is always higher than margin because profit is divided by a smaller number (cost vs revenue). A 50% markup ≠ 50% margin.

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