NoInstallTools

Profit Margin Calculator

Calculate profit, revenue, gross and net margin, and markup — pick the mode that matches what you already know.

Enter Cost & Revenue

Results update instantly. Add operating expenses to see net figures.

$
$
$

Profit Margin Formulas Explained

Gross ProfitRevenue − Cost of Goods Sold (COGS)
Gross Profit Margin(Gross Profit ÷ Revenue) × 100
Net ProfitGross Profit − Operating Expenses
Net Profit Margin(Net Profit ÷ Revenue) × 100
Markup(Gross Profit ÷ Cost) × 100
Revenue from MarginCost ÷ (1 − Margin % ÷ 100)

Margin vs. Markup — what's the difference?

Margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A 30% margin is not the same as a 30% markup — a 30% margin on a $100 item means $30 profit and $70 cost, whereas a 30% markup on a $70 cost gives $91 revenue and only a 23% margin.

Gross vs. Net margin

Gross margin only subtracts the direct cost of producing or buying the product (COGS). Net margin also subtracts operating expenses — rent, salaries, marketing, software — giving a true picture of bottom-line profitability. Add your operating expenses above to unlock net figures.

Typical margin benchmarks

Software / SaaS60 – 80%
Retail (e-commerce)20 – 45%
Restaurants / Food3 – 15%
Manufacturing10 – 30%
Professional Services25 – 50%
Grocery / Supermarkets1 – 5%