Yes. A 100% markup means your selling price is double your cost. However, it’s impossible to have a 100% margin, as that would mean your cost is zero.

 A good profit margin varies greatly by industry. For retail, margins are often 20-40%, but for software or services, they can be much higher, often 50-80% or more. The key is to aim for a margin that makes your business sustainable.

Yes, a negative margin means your cost is higher than your selling price. This indicates that you are losing money on every sale. It’s a critical warning sign for any business.

Because markup is based on the cost, which is a smaller number than the revenue. The same profit amount will always be a larger percentage of a smaller number. For example, a $25 profit on a $50 cost is a 50% markup, but it’s only a 33% margin on $75 revenue

You can use a simple formula: Markup = (Margin / (1 – Margin)) and Margin = (Markup / (1 + Markup)). Our tool handles this conversion for you automatically.

Your profit margin is a key indicator of your business’s health. It tells you how efficiently you are converting revenue into profit. A low margin can signal issues with pricing, costs, or both.