Margin/Markup Calculator

Calculate profit margins, markup percentages, and optimal pricing strategies. Includes break-even analysis and profitability planning.

Pricing Calculation

Monthly fixed costs (rent, salaries, utilities, etc.)

Results & Analysis

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Enter pricing details to see margin analysis

Understanding Margin vs Markup

Profit Margin

  • Formula: (Selling Price - Cost) ÷ Selling Price × 100
  • Shows profit as percentage of selling price
  • Used for financial analysis and comparison
  • Maximum possible margin is 100%

Markup

  • Formula: (Selling Price - Cost) ÷ Cost × 100
  • Shows profit as percentage of cost price
  • Commonly used in retail pricing
  • Can exceed 100% (no upper limit)

Industry Margin Benchmarks

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Retail

Clothing: 50-60%
Electronics: 10-15%
Groceries: 1-3%
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Manufacturing

Automotive: 8-12%
Software: 70-85%
Food & Beverage: 10-15%
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Services

Consulting: 60-80%
Healthcare: 15-25%
Restaurants: 3-7%