Margin Calculator
Gross margin and markup (%) from cost and revenue.
How it works
Margin = (rev−cost) ÷ rev; Markup = (rev−cost) ÷ cost
Same profit, different denominators: margin uses revenue, markup uses cost. Markup always exceeds margin.
Worked example
Price 100, cost 60: gross profit 40, margin = 40 ÷ 100 = 40%, markup = 40 ÷ 60 ≈ 66.7%.
Same profit, 26.7 points apart — always ask which one is being quoted.
Notes and limitations
Margin divides by price; markup divides by cost. Markup is convenient for pricing, margin is better for performance review. Mixing them systematically skews quotes.