What is the difference between profit margin and markup?

Margin is profit as a percentage of revenue: (Revenue − Cost) / Revenue. Markup is profit as a percentage of cost: (Revenue − Cost) / Cost. A 50% markup produces a 33% margin, not 50%. They measure the same profit from different bases.

What is a good profit margin?

It varies widely by industry. Software/SaaS: 70–90%+ gross margin. Retail: 20–50%. Restaurants: 3–9% net margin. Consulting and services: 15–40% net. Compare against industry benchmarks rather than a universal standard.

How do I calculate a 30% margin on a product?

If cost is $70 and you want a 30% margin: Selling Price = Cost / (1 − Margin) = $70 / 0.70 = $100. The margin is 30% of the $100 revenue ($30 profit). Don't add 30% to the cost ($70 × 1.30 = $91) — that gives 23% margin, not 30%.

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What is Margin Calculator?

Profit margin measures what percentage of revenue is kept as profit after costs. Gross margin, operating margin, and net margin are the three key metrics every business tracks. DailyDevTools' Margin Calculator computes profit margin from cost and revenue, or reverse-calculates the selling price needed to achieve a target margin — essential for pricing products, quoting freelance rates, and evaluating business profitability.

How to use Margin Calculator

1Enter cost and revenue to calculate gross profit margin and markup percentage
2Or enter cost and target margin percentage to find the required selling price
3Toggle between Margin (% of revenue) and Markup (% of cost) calculations
4View the breakdown: cost, profit amount, revenue, and margin percentage

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