ClarityHow to use this tool
- Enter revenue, cost.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Revenue | Numeric value. Minimum: 0.01. | 1000 |
| Cost | Numeric value. Zero or positive. | 650 |
Result for these sample inputs
35 percent
- Profit
- 350
- Markup (%)
- 53.8461538
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100.
Revenue of 1,000 and cost of 650 give a profit of 350, a 35% margin and about 53.85% markup.
Understanding your result
Margin divides profit by revenue; markup divides profit by cost. These percentages answer different pricing questions. A negative margin means the entered cost exceeds revenue.
What to keep in mind
Use the same accounting period and currency for both amounts. The result is gross or net margin depending on which costs you include.
Common questions
Why are margin and markup different?
Margin divides profit by revenue. Markup divides the same profit by cost. They use different bases.
Can margin be negative?
Yes. If costs exceed revenue, profit and margin are negative. Zero revenue has no defined percentage margin.
Methodology maintained by ClarityKit. How these tools are built and checked.