Profit Margin Calculator
Calculate margin, markup and selling price in one second. Knowing your real profit is the first step to growing your business.
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From cost & price to margin, or from cost & margin to price
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Cost, selling price or desired margin percentage
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Margin, markup, profit per unit and total profit
Margin vs Markup
Markup grows much faster than margin — confusing them can cost you dearly.
Scenario Comparison
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Calculate a margin and click “Save scenario” to start comparing.
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Percentage Calculator →Frequently Asked Questions
What is the difference between margin and markup?
Profit margin is the percentage of profit relative to the selling price: (sale - cost) / sale × 100. Markup is the percentage of profit relative to the cost: (sale - cost) / cost × 100. Example: if you buy at $60 and sell at $100, the margin is 40% but the markup is 66.7%.
What is a good profit margin?
It depends on the industry. Services: 50-80%. Digital products: 70-90%. Retail: 30-50%. Restaurants: 60-70% gross. A net margin of 10-20% is considered healthy for most small businesses.
How do I calculate selling price from a desired margin?
Selling price = Cost / (1 - margin/100). Example: if the cost is $60 and you want a 40% margin, the selling price is $60 / (1 - 0.40) = $100.
Does profit margin include taxes?
Gross margin does not include taxes. To get net margin, subtract taxes, operating costs and overheads from the gross profit. This calculator shows gross margin.
How do I improve my profit margin?
You can improve margin by: reducing production/purchase costs, increasing prices, reducing overhead, improving operational efficiency, or focusing on higher-margin products/services. Even a 2-3% improvement can significantly impact your bottom line over time.
How does a discount affect profit margin?
Discounts affect margin non-linearly. For example, with a 40% margin, a 10% discount on price reduces your margin to about 33%. To maintain the same total profit, you'd need to sell about 25% more units. Use the “Discount Impact” section above to calculate your specific case.
What is the average profit margin by industry?
Margins vary widely by industry. Software/SaaS: 70-85%. Consulting: 50-80%. E-commerce: 40-60%. Retail: 30-50%. Restaurants: 60-70%. Manufacturing: 25-45%. Construction: 15-25%. Automotive: 10-20%. Use the Industry Benchmark section above to see where you stand compared to the average.
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