Finance

Profit Margin Calculator

Calculate profit margin, markup percentage, and gross/net profit from cost and revenue.

Formulas:
Profit = Revenue − Cost
Margin = Profit / Revenue × 100
Markup = Profit / Cost × 100

Margin vs Markup

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. They describe the same profit differently:

MarginEquivalent Markup
10%11.1%
20%25%
25%33.3%
30%42.9%
33.3%50%
50%100%

Industry Average Margins

Software/SaaS: 60-80%, Retail: 2-5%, Restaurants: 3-9%, Manufacturing: 5-10%, Professional Services: 15-40%.