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Profit Margin Calculator
Calculate profit margins, markup, and profitability for your products
Calculate Your Profit Margin
Enter your revenue and costs to calculate margins
$
The price you sell the product for
$
Total cost of goods sold
What is Profit Margin?
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%
Track Profitability Automatically
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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