Profit Margin Calculator
Free profit margin calculator for businesses. Calculate gross margin, net margin, and markup from cost and revenue. Three modes: margin from revenue, selling price from margin, and max cost from margin. Includes industry benchmarks and margin vs markup explanation.
Unlock 8 AI-powered analysis tools
Resume scanner, contract analyzer & more — Pro $9/mo
Want more? Unlock the full experience
Compare Pro allowances for your work with Profit Margin Calculator
More daily tool uses
500 tool uses per day on Pro
Monthly AI allowance
50 AI uses per month across supported AI tools
Ad-free tools
Use NexTool without ads while your Pro plan is active
Sponsored · We may earn a commission at no cost to you
How to Use Profit Margin Calculator
- 1Choose calculation mode: margin, selling price, or max cost.
- 2Enter your known values (cost, revenue, or desired margin).
- 3View gross margin, net margin, and markup percentages.
- 4Compare with industry benchmarks.
Frequently Asked Questions
Margin is profit as a percentage of selling price: (Price - Cost) / Price. Markup is profit as a percentage of cost: (Price - Cost) / Cost. A 50% markup gives a 33% margin. A 100% markup gives a 50% margin. They're related but not the same.
It varies by industry. Software/SaaS: 70-90% gross margin. Retail: 25-50%. Restaurants: 3-9% net. Manufacturing: 10-20%. Service businesses: 15-40%. Compare to your specific industry, not across industries.
Either increase price (if market allows), reduce cost of goods (negotiate with suppliers, improve efficiency), reduce operating expenses, or increase volume to get economies of scale. Most successful businesses focus on all four.
The Free plan includes 10 tool uses per day. Some features require an account or a paid plan. Check the controls on the tool page and Pricing for the applicable limits.
The Profit Margin Calculator returns results based on the inputs and the tool methodology. Check assumptions, units and source dates. Treat projections as estimates. For critical decisions, always consult a qualified professional.
Yes, the Profit Margin Calculator is fully responsive and works perfectly on smartphones, tablets, and desktop computers. Simply open NexTool in your mobile browser and navigate to the tool — no app download required.
No spam. Unsubscribe anytime.
About Profit Margin Calculator
Free profit margin calculator for businesses. Calculate gross margin, net margin, and markup from cost and revenue. Three modes: margin from revenue, selling price from margin, and max cost from margin. Includes industry benchmarks and margin vs markup explanation.
Use the controls shown by Profit Margin Calculator to generate and review your result. Available features and usage limits depend on your plan. Check the tool's instructions and privacy information before submitting data.
Embed This Tool
Add Profit Margin Calculator to your website. Paste the code below into your HTML. The iframe auto-resizes to fit the tool content.
Related Tools
Explore More
Tailored For
Get Free Financial Guides
Guides and updates about NexTool calculators.