Profit Margin Calculator
Calculate gross profit margin, net profit margin, and markup percentage. Essential for pricing products, evaluating business performance, and comparing with industry benchmarks.
Part of our Business Calculators collection.
Profit Margin Calculator
Free online calculator
$
$
Direct costs: materials, manufacturing, etc.
$
Overhead: salaries, rent, marketing, etc.
Results update automatically as you type
How to Use This Calculator
- 1
Enter your revenue (total sales).
- 2
Enter your cost of goods sold (direct costs).
- 3
Enter operating expenses (overhead).
- 4
See gross margin, net margin, and markup %.
Profit Margin Formulas
Gross Profit = Revenue − COGS Gross Margin % = (Gross Profit / Revenue) × 100 Net Profit = Revenue − COGS − Operating Expenses Net Margin % = (Net Profit / Revenue) × 100 Markup % = (Gross Profit / COGS) × 100
Example Calculation
Example: $10,000 revenue, $6,000 COGS, $2,000 opex
Inputs
revenue: 10000cogs: 6000operatingExpenses: 2000
Result
Gross margin: 40% | Net margin: 20%
Gross profit = $4,000 (40%). Net profit = $2,000 (20% after $2,000 opex).
Frequently Asked Questions
What is a good profit margin?
It varies enormously by industry. Grocery stores run 2–5% net margins; SaaS companies often achieve 20–30%+. Compare against your industry benchmark rather than an absolute standard.
What is the difference between margin and markup?
Margin is profit as a % of selling price. Markup is profit as a % of cost. A 50% markup = 33% margin. They're measuring the same profit from different perspectives.