Profit Margin Calculator

Calculate your gross profit margin, net profit margin, and markup percentage. Essential for pricing and business decisions.

Revenue ($)

Cost of Goods Sold ($)

Operating Expenses ($)

How Is This Calculated?

Profit margins measure how much of each dollar of revenue translates to profit. • Gross Profit Margin = (Revenue - COGS) / Revenue × 100 • Net Profit Margin = (Revenue - COGS - Expenses) / Revenue × 100 • Markup = (Revenue - COGS) / COGS × 100 COGS (Cost of Goods Sold) is the direct cost of producing goods. Operating expenses include rent, salaries, marketing, etc.

Frequently Asked Questions

What is a good profit margin?

Profit margins vary by industry. Retail typically sees 2-5% net margins, while software companies may achieve 20-40%+. Compare your margins to industry benchmarks for a meaningful assessment.

What's the difference between margin and markup?

Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. A 50% markup equals a 33.3% margin. Margin is always lower than markup for the same product.

Disclaimer: This calculator provides estimates for informational purposes only and should not be considered financial advice. Results may vary based on your specific circumstances. Please consult a qualified financial professional for advice tailored to your situation.