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%