Operating Margin Calculator
Calculate operating margin percentage from operating expenses and revenue.
How This Works
Margin expresses profit as a percentage of the selling price (revenue). Markup expresses the same profit as a percentage of cost. They're often confused but give different numbers for the same sale — margin is always lower than markup for a profitable sale.
Formula
Margin % = Profit ÷ Revenue × 100 | Markup % = Profit ÷ Cost × 100
Example
An item costing $100 sold for $150 has $50 profit — a 33.3% margin but a 50% markup.
Frequently Asked Questions
What is the profit margin on $100 cost, $150 revenue?
33.3% margin, or 50.0% markup — both describing the same $50.00 profit.
What's the difference between margin and markup?
Margin divides profit by revenue (selling price); markup divides profit by cost. Markup is always a higher percentage than margin for the same profitable sale.