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Profit Margin Calculator for Self-Employed & Freelancers

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. Tailored with tips and guidance for Calculators optimized for self-employed individuals, freelancers, and gig workers..

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Self-EmployedTips for Self-Employed & Freelancers

  • 1You pay both employee and employer portions of FICA — 15.3% total (12.4% SS + 2.9% Medicare)
  • 2Estimated quarterly tax payments are due Apr 15, Jun 15, Sep 15, Jan 15
  • 3The qualified business income (QBI) deduction can save up to 20% on pass-through income
  • 4Track all business expenses — home office, equipment, software, and mileage are deductible
  • 5Consider a SEP-IRA (up to $69,000 in 2024) or Solo 401(k) for retirement savings
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About Profit Margin Calculator for Self-Employed & Freelancers

This profit margin calculator is specifically designed for Calculators optimized for self-employed individuals, freelancers, and gig workers.. Whether you're just getting started or looking to optimize your financial strategy, this calculator provides the insights you need to make informed decisions.

Why Self-Employed & Freelancers Need This Calculator

Self-Employed & Freelancers face unique financial considerations that generic calculators don't address. Use the tips above alongside this profit margin calculator to get a complete picture of your financial situation. The calculator is completely free, runs instantly in your browser, and never stores your personal data.

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Calculate margin from cost and revenue
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
MarginMarkup
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
IndustryGross MarginNet Margin
Software / SaaS70–90%15–35%
Retail (General)25–50%2–5%
Retail (Luxury)55–75%8–15%
Restaurants55–65%3–9%
Manufacturing25–35%5–10%
E-Commerce40–60%5–15%
Healthcare50–65%5–15%
Construction15–25%2–8%
Consulting50–80%15–25%
Real Estate30–50%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.