Calculate profit margin and pricing.
Formula: Margin % = (Revenue - Cost) ÷ Revenue × 100
Formula: Selling Price = Cost ÷ (1 - Margin %)
Formula: Maximum Cost = Revenue × (1 - Margin %)
What is Profit Margin?
Profit margin is the percentage of revenue that represents profit. It’s calculated by dividing profit by revenue and multiplying by 100.
Margin vs Markup: Margin is based on selling price, while markup is based on cost. A 50% margin equals a 100% markup.