Profit Margin Calculator
Calculate gross profit, net profit margin, and markup percentage from your cost and revenue figures.
Profit Margin
Gross Profit
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Profit Margin
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Markup %
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Cost %
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Find Selling Price from Margin
Selling Price Should Be
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Understanding Profit Margin vs Markup
Profit margin and markup are both percentages derived from cost and revenue, but they use different bases:
- Profit Margin = (Revenue − Cost) ÷ Revenue × 100 — percentage of revenue that is profit
- Markup = (Revenue − Cost) ÷ Cost × 100 — percentage added to cost to get selling price
Frequently Asked Questions
What is a good profit margin?
It varies by industry. Grocery stores often have 2–5% net margins, while software companies can exceed 30–40%. Generally, a net profit margin above 10% is considered healthy across most industries.
What is the difference between gross and net margin?
Gross margin only subtracts the cost of goods sold (COGS) from revenue. Net margin also subtracts operating expenses, taxes, interest, and all other costs, giving the true profitability picture.