Profit Margin Calculator
Calculate profit margins, markup, and profitability for your products
The price you sell the product for
Total cost of goods sold
Profit margin is the percentage of revenue that remains as profit after deducting costs. It's a key metric for understanding business profitability. A higher profit margin means you're keeping more money from each sale, while a lower margin means costs are consuming more of your revenue.
How to Calculate Profit Margin
Profit Margin = ((Revenue - Costs) ÷ Revenue) × 100
Markup
The percentage added to cost to determine selling price.
Markup = (Profit ÷ Cost) × 100
Key Difference
Margin is based on selling price, while markup is based on cost. A 50% margin is not the same as a 50% markup!
Typical Margins by Industry:
- Grocery Retail:1-3%
- Clothing Retail:4-13%
- Software/SaaS:70-90%
- Restaurants:3-5%
With our platform, you can:
- ✓Automatically calculates margins for all products
- ✓Tracks costs including shipping and fees
- ✓Analyzes profitability trends over time
- ✓Optimizes pricing based on data
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What next?
Track real margin per product and per customer, computed from the prices you actually charged rather than list price.
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Mis à jour le 8 août 2026