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How it works
Formula & explanation
Margin Calculator uses the following calculation:
Margin% = (Revenue − Cost) / Revenue × 100
This is a simplified model intended for planning and education. Real-world offers from lenders, institutions, or tax authorities may include additional fees, rules, or adjustments not reflected here.
FAQ
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost — they're related but numerically different.
What's a healthy margin?
It varies enormously by industry — retail often runs thin margins while software can run very high ones.
How do I price for a target margin?
Divide your cost by (1 − target margin%) to find the selling price that achieves that margin.
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