Margin is the ratio of profit to selling price, expressed as a percentage. It tells us what portion of every dollar of revenue remains as profit after covering costs.
Margin = (Price − Cost) ÷ Price × 100%
Cost: $80 · Price: $100
Margin = (100 − 80) ÷ 100 × 100% = 20%
Calculate it yourself
Use the margin & markup calculator.
Margin vs Markup
Margin and markup are two different ways of expressing the same profit — but give different numbers. A 20% margin ≠ a 20% markup. On a $80 cost and $100 price: margin = 20%, markup = 25%.