Money
Profit Margin Calculator
Enter revenue and cost to see your gross profit margin and markup percentage.
How it works
Gross profit margin = (Revenue − Cost) ÷ Revenue × 100. Markup = (Revenue − Cost) ÷ Cost × 100. Margin tells you the percentage of revenue kept as profit; markup tells you how much above cost you're charging.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a % of revenue. Markup is profit as a % of cost. A 25% markup equals a 20% margin. Confusing the two is a common pricing mistake.
What is a good profit margin?
It varies by industry. Retail: 2–10%. Software / SaaS: 60–80% gross margin. Professional services: 30–50%. Compare against your sector benchmarks.