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Margin Calculator - Profit Margin & Markup Analysis for Businesses

Calculate your profit margin and markup with ease. Learn about gross margin vs. net margin, and how to set prices that ensure business sustainability.

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Margin Calculator: Optimizing Your Business Profitability

For any business owner or freelancer, understanding the difference between revenue and profit is the foundation of survival. Your Profit Margin tells you what percentage of your sales is actual profit. This Margin Calculator helps you set the right prices and track your efficiency, ensuring you don't leave money on the table.

1. Margin vs. Markup: The Key Distinction

Many people use these terms interchangeably, but they are very different:

  • Markup: The amount you add to the cost of a product to reach the selling price.
  • Margin: The percentage of the selling price that is profit.

To see how your overall investments are performing, use our ROI Calculator.

2. Managing Growth and Taxes

Setting your margin is just the first step. You must also account for taxes using our VAT Calculator. For a complete look at your business income after payroll and other deductions, check our Net to Gross Calculator.

3. FAQ

Q: What is a "Healthy" margin? A: This varies by industry. Retail may target 30-50%, while software (SaaS) often targets 80% or more.

Q: How do I calculate margin from markup? A: Margin = [Markup / (1 + Markup)]. Our calculator handles this conversion automatically for you.

Conclusion

Pricing is a strategy, not a guess. Use this tool to ensure every sale contributes to your long-term success. Enter your cost and desired margin above to find your target price.