Profit, margin, and markup are different
Profit per drink is the selling price minus the drink cost. Profit margin expresses that profit as a percentage of the selling price. Markup expresses profit as a percentage of the drink cost.
Profit = selling price − drink cost
Margin = profit ÷ selling price × 100
Markup = profit ÷ drink cost × 100
Margin = profit ÷ selling price × 100
Markup = profit ÷ drink cost × 100
Illustrative example
With a $3.80 drink cost and a $20 selling price, profit is $16.20. Margin is $16.20 ÷ $20 = 81.0%. Markup is $16.20 ÷ $3.80, or about 426.3%.
Use margin as one review point
- Check that the cost inputs reflect the recipe and direct packaging you actually want to assess.
- Review the selling price alongside customer expectations, local competition, taxes, delivery fees, labor, waste, and other business context.
- Use what-if values to compare an option; do not read the calculator as a promise of sales or profit.
DrinkCostDee calculates from the values you enter. It does not apply automatic price changes, live exchange rates, or hidden operating-cost assumptions.