Profit Margin Calculator
Calculate profit margin, markup, selling price & more for your business.
📊 Calculate Profit Margin
Enter your cost and selling price to find your profit margin.
💡 Quick Examples
Advanced Profit Margin Calculator
Maximize your business earnings with our free Profit Margin Calculator. Instantly calculate gross profit margin, net profit, and markup percentages. Whether you run an eCommerce store, a restaurant, or a service business, this revenue calculator helps you set the perfect pricing strategy.
Money left after direct costs
Your actual bottom line
Percentage of revenue kept
Markup vs. Margin: What's the Difference?
Many business owners confuse these two. Our profit margin calculator helps clarify:
📈 Profit Margin
Calculated based on Selling Price (Revenue).
"What percentage of the sale price is profit?"
🏷️ Markup
Calculated based on Cost of Goods Sold (COGS).
"How much did I add to the cost to get the price?"
Why Calculate Your Profit Margins?
✅ Set Winning Prices
Use this revenue calculator to ensure your prices cover costs and generate enough gross profit to sustain your business.
✅ Analyze Health
Regularly checking your net profit margin helps identify rising costs or inefficient spending before it's too late.
✅ Compare Performance
Compare margins across different products or services to see which ones are your real money makers.
Frequently Asked Questions
❓ How do I calculate profit margin manually?
Subtract your total costs from your revenue to get profit. Then divide profit by revenue and multiply by 100. Formula: ((Revenue - Cost) / Revenue) × 100. Our profit margin calculator does this instantly.
❓ What is a good profit margin?
It varies by industry. Generally, a net profit margin of 5% is low, 10% is healthy, and 20% is excellent. Retailers often have lower margins than software companies.
❓ Is margin the same as markup?
No. Markup is based on cost, while margin is based on revenue. A 50% markup does NOT equal a 50% margin. Use our tool to see the exact difference.