Profit Margin Calculator

Calculate your gross profit margin, net margin, and markup percentage. Enter cost price and selling price to see full profitability breakdown.

Revenue & Cost

Currency

Selling Price (Revenue)$1,000

010,00,000

Cost of Goods / Service$600

010,00,000

Operating Expenses (optional)

Your Result

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Fill in the details and
your result appears here.

Gross Margin

—

Gross Profit—

Net Profit—

Net Margin—

Markup %—

Related Calculators

Did You Know?

50% markup ≠ 50% margin

If your cost is $100 and you mark up 50% to $150, your margin is 33% (50÷150), not 50%. Mixing up markup and margin is one of the most expensive pricing mistakes in business.

How to use this calculator

Enter selling price

The revenue you receive per unit or per project.

Enter cost

The direct cost of goods sold or service delivered.

Add operating expenses

Optional: rent, salaries, marketing. Needed to calculate net margin.

Read margins

See gross margin, net margin, and markup % side by side.

The formula explained

Gross Margin = (Revenue − COGS) ÷ Revenue × 100

Net Margin = (Gross Profit − Expenses) ÷ Revenue × 100

Markup = Gross Profit ÷ Cost × 100

Margin is relative to selling price. Markup is relative to cost. A 50% markup = 33% margin.

Frequently Asked Questions

What is a good profit margin?

It varies by industry. Software SaaS: 70–80%. Retail: 20–40%. Restaurants: 3–9%. Compare to industry benchmarks, not absolute numbers.

Margin vs Markup — what is the difference?

Margin = profit as % of selling price. Markup = profit as % of cost. A 50% markup on a $10 item = $5 profit = 33% margin.

What is COGS?

Cost of Goods Sold — the direct cost to produce the product or service: materials, labour, manufacturing. Does not include overhead or admin.

How do I improve my profit margin?

Raise prices, reduce COGS through better sourcing, reduce operating expenses, or increase volume to spread fixed costs.