Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue that exceeds the cost. Margin = (Selling Price - Cost) / Selling Price × 100.
What is the difference between margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. The same transaction always has a higher markup than margin.
What is a good profit margin?
It varies by industry: retail 20-50%, food service 60-70%, software 70-90%. Consider competitive landscape and market conditions.
Updated 2026 — latest rates