Profit Margin Calculator

Free profit margin calculator — turn revenue and cost into gross profit, profit margin, and markup percentage instantly.

Profit Margin Calculator
$
$
Profit margin
35.0%
Gross profit
$35,000
Markup
53.8%

On $100,000 revenue at $65,000 cost, you keep $35,000 — a 35.0% profit margin (a 53.8% markup on cost).

Widen your margins.

AMW Suite cuts tool sprawl and overhead while our team drives revenue — both sides of the margin equation, handled.

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How to Use This Calculator

1

Enter your total revenue and your cost of goods (COGS).

2

The calculator subtracts cost from revenue to get gross profit.

3

It shows your profit margin and markup percentages instantly.

Frequently Asked Questions

How do you calculate profit margin?

Profit margin = (revenue − cost) ÷ revenue × 100. On $100,000 revenue with $65,000 cost, profit is $35,000 and the margin is 35%.

What is the difference between margin and markup?

Both use the same profit, but margin divides it by revenue while markup divides it by cost. A 35% margin equals a roughly 54% markup. Confusing the two is a common pricing mistake.

What is a good profit margin?

It varies widely by industry — software can exceed 70% gross margin, retail often runs 20–40%, and restaurants much lower. Compare against peers in your sector rather than a universal benchmark.

What is the difference between gross and net margin?

Gross margin counts only the direct cost of goods. Net margin subtracts all expenses — overhead, salaries, marketing, taxes. This calculator shows gross margin; net margin is lower.

How can I improve my profit margin?

Raise prices, reduce cost of delivery, cut overhead, or shift sales toward higher-margin products. Even small efficiency gains compound — and consolidating tools and overhead is one of the fastest levers.

Why Use This Calculator

  • Calculate profit margin % instantly
  • See gross profit in dollars
  • Get markup % alongside margin
  • Price products and services with confidence

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"The budget breakdown helped us identify where we were overspending. We reallocated 20% of our budget to higher-performing channels."

Marketing Manager, E-commerce Brand

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