Free Profit Margin Calculator
Calculate profit, gross margin, and markup percentage instantly. Essential for pricing products and services correctly.
How It Works
Calculate profit in 3 steps
Choose Mode
Analyze an existing price or find the right price to meet your margin target.
Enter Numbers
Input your cost and revenue (or target margin). All fields update in real time.
Get Breakdown
See profit, gross margin %, and markup % instantly calculated.
Frequently Asked Questions
Common questions about profit margins
What is profit margin?
Profit margin is the percentage of revenue that is profit. It is calculated as: (Revenue - Cost) ÷ Revenue × 100. A 40% margin means you keep $0.40 of every $1 earned.
What is the difference between margin and markup?
Margin is profit as a % of revenue. Markup is profit as a % of cost. A 50% markup on a $100 cost gives a $150 price, which is a 33% margin.
What is a good profit margin?
It varies by industry. Retail typically targets 2-5% net margin, while service businesses aim for 15-20%+. Software/SaaS businesses can achieve 60-80% gross margins.
How do I use this to price my services?
Enter your cost and your desired margin percentage. The calculator will show you the minimum price to charge to achieve that margin.
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