Work & business
Calculation method and formula
(Revenue − Costs) ÷ Revenue × 100
Understand the inputs
- Revenue
- Use a measured value or your own assumption.
- Costs
- Use a measured value or your own assumption.
Assumptions and limitations
Margin divides profit by selling price; markup divides it by cost. Equal percentages therefore give different prices. Use a consistent tax basis for costs and sales.
The formula uses the specified units. Displayed numbers are rounded; whole packs, item counts and full time periods may also be rounded within the calculation.