Finance
Profit Margin Calculator
Calculate gross margin, net margin, markup, and selling price. Three calculation modes to solve any profit equation.
Enter values and click Calculate
How is this calculated?
Profit = Revenue - Cost
Margin % = (Profit / Revenue) × 100
Markup % = (Profit / Cost) × 100
Selling Price = Cost / (1 - Margin/100)
Cost = Price × (1 - Margin/100)FAQ
Frequently asked questions about profit margin
What is profit margin?
Profit margin is the percentage of revenue that remains as profit after costs. Gross margin = (Revenue - Cost) / Revenue × 100. A 40% margin means you keep $0.40 of every dollar earned.
What is the difference between margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin. They measure the same profit differently.
What is a good profit margin?
It varies by industry. Software companies often achieve 60-80% gross margins. Retail typically sees 20-50%. Restaurants average 3-9% net margin. Compare within your industry.
How do I calculate selling price from cost and margin?
Selling Price = Cost / (1 - Margin/100). For example, if cost is $60 and desired margin is 40%: $60 / (1 - 0.40) = $100 selling price.
What is the difference between gross and net margin?
Gross margin only subtracts direct costs (COGS). Net margin subtracts all expenses including overhead, taxes, and interest. Net margin gives the true bottom-line profitability.
Is this profit margin calculator free?
Yes, completely free with no sign-up required. All calculations happen in your browser — your financial data is never sent to any server.