Understanding the margin calculator
Margin and markup describe the same gap between cost and price from two different directions. Margin divides the profit by the selling price the share of each sales dollar you keep. Markup divides the same profit by the cost how much you inflated the cost to set the price. A $60 cost sold at $100 is a 40% margin but a 66.7% markup.
Mixing the two is one of the most expensive spreadsheet mistakes in small business: pricing for a "40% margin" by multiplying cost by 1.4 actually yields a 28.6% margin. To hit a target margin m, divide cost by (1 - m) instead the calculator gives both figures so the distinction stays visible.
Results are estimates for education only and are not financial advice.