Profit Margin Calculator
Profit margin calculator — turn revenue and cost into gross profit, profit margin, and markup percentage instantly.
On $100,000 revenue at $65,000 cost, you keep $35,000 — a 35.0% profit margin (a 53.8% markup on cost).
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How to Use This Calculator
Enter your total revenue and your cost of goods (COGS).
The calculator subtracts cost from revenue to get gross profit.
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
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Calculate profit margin % instantly
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See gross profit in dollars
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Get markup % alongside margin
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Price products and services with confidence
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