Profit Margin Calculator

Calculate margin from cost and revenue

Revenue / Selling Price ($)

Cost of Goods Sold ($)

Operating Expenses ($)optional

Enter your values above to calculate profit margins in real time.

Margin vs. Markup: What's the Difference?

Profit Margin

Percentage of the selling price that is profit.

Margin = (Price - Cost) / Price x 100

Example: Sell for $100, cost $60 = 40% margin

Markup

Percentage of the cost that is added as profit.

Markup = (Price - Cost) / Cost x 100

Example: Sell for $100, cost $60 = 66.7% markup

Common confusion: A 50% markup does NOT equal a 50% margin. A 50% markup on a $100 cost gives a $150 selling price, which is only a 33.3% margin. Margin is always lower than markup for the same product.

Margin / Markup Conversion

Margin	Markup
10.0%	11.1%
15.0%	17.6%
20.0%	25.0%
25.0%	33.3%
30.0%	42.9%
33.3%	49.9%
40.0%	66.7%
50.0%	100.0%

Typical Profit Margins by Industry

Industry	Gross Margin	Net Margin
Software / SaaS	70–90%	15–35%
Retail (General)	25–50%	2–5%
Retail (Luxury)	55–75%	8–15%
Restaurants	55–65%	3–9%
Manufacturing	25–35%	5–10%
E-Commerce	40–60%	5–15%
Healthcare	50–65%	5–15%
Construction	15–25%	2–8%
Consulting	50–80%	15–25%
Real Estate	30–50%	10–20%

These are approximate ranges. Actual margins vary by company size, region, and business model.

How Profit Margins Are Calculated

Gross Profit Margin

Gross Margin = (Revenue - Cost of Goods Sold) / Revenue x 100

Measures profitability after direct production costs. Does not include operating expenses, taxes, or interest.

Net Profit Margin

Net Margin = (Revenue - COGS - Operating Expenses) / Revenue x 100

The bottom line: what percentage of revenue remains as profit after all expenses.

Markup Percentage

Markup = (Selling Price - Cost) / Cost x 100

How much above cost you charge. Useful for pricing, but not the same as margin.