Calculate gross profit, profit margin percentage, and markup percentage. Enter any two of cost, revenue, or margin to find the third. Perfect for pricing products, evaluating deals, and understanding your business profitability.
Profit Margin Calculator
Enter Cost and Revenue — or enter Cost and Margin % to find Revenue.
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Gross Profit
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Profit Margin %
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Markup %
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Cost
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Revenue
Margin vs. Markup: What's the Difference?
Profit Margin is gross profit divided by revenue: Margin = (Revenue − Cost) / Revenue × 100. It tells you what percentage of each dollar of sales is profit.
Markup is gross profit divided by cost: Markup = (Revenue − Cost) / Cost × 100. It tells you how much above your cost you are charging customers.
For example, if you buy a product for $50 and sell it for $100: Profit = $50, Margin = 50%, Markup = 100%. Notice that a 50% margin does not equal a 50% markup — they are calculated from different bases.
Common Margin Benchmarks
Industry
Typical Gross Margin
Software / SaaS
70–80%
Retail
25–50%
Restaurants
60–70% (food cost ~30–40%)
Manufacturing
20–40%
Grocery
20–25%
Frequently Asked Questions
What is a good profit margin?+
It depends heavily on the industry. Software companies often achieve 70%+ gross margins. Retail businesses typically range from 25–50%. Restaurants run on 60–70% gross margin but thin net margins (3–9%) after labor and overhead. A "good" margin is one that covers all your operating expenses and leaves meaningful net profit.
How do I calculate selling price from cost and desired margin?+
Use the formula: Selling Price = Cost / (1 − Margin%/100). For example, to achieve a 40% margin on a $60 cost: Price = 60 / (1 − 0.40) = 60 / 0.60 = $100. This is why entering a target margin in our calculator finds your required revenue automatically.
What is the difference between gross margin and net margin?+
Gross margin = (Revenue − Cost of Goods Sold) / Revenue. It excludes operating expenses like rent, salaries, and marketing. Net margin = Net Income / Revenue, accounting for all expenses including taxes and interest. This calculator computes gross margin.