Profit Margin Calculator

Profit margin is the percentage of revenue that is profit (profit divided by revenue). Markup is the percentage added to cost to get the selling price (profit divided by cost). A 50% markup results in a 33.3% margin.

Gross profit margin equals (Revenue - Cost) divided by Revenue, multiplied by 100. It measures what percentage of each dollar of revenue is left after paying for the cost of goods sold.

Good margins vary widely by industry. Retail typically sees 2-5% net margins, software can exceed 20%, and food services average 3-9%. Compare your margin against industry benchmarks for the most meaningful assessment.

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Yes. Enter your operating expenses to calculate net profit margin in addition to gross margin. Net margin accounts for all costs including overhead, giving a more complete picture of profitability.