Profit Margin Calculator

Free profit margin calculator for businesses. Calculate profit margin, gross profit, and markup percentage instantly.

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Calculate Your Profit Margin

Enter your costs and revenue to calculate profit margin and markup

$

How much it costs you to produce/buy the product

$

How much you sell the product for

Understanding Profit Margin

What is Profit Margin?

Profit margin is the percentage of revenue that remains as profit after deducting costs. It shows how much profit you make per dollar of sales.

Good Profit Margins by Industry:

  • • Retail: 3-5%
  • • Restaurants: 3-10%
  • • Software/SaaS: 70-90%
  • • Construction: 2-10%
  • • Consulting: 10-20%

Margin vs Markup

Profit Margin

Percentage of the selling price that is profit. Calculated as (Revenue - Cost) ÷ Revenue.

Markup

Percentage added to the cost to determine the selling price. Calculated as (Revenue - Cost) ÷ Cost.

Example:

Cost: $50, Selling Price: $100
Profit Margin: 50%
Markup: 100%

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