Tools Coaster500+ FREE TOOLS
Search

Profit Margin Calculator

CALC

Calculate profit margin and markup percentage for products.

Enter values and click Calculate

๐Ÿ“– How to Use Profit Margin Calculator

1
Enter revenue
Input your total sales revenue for the period.
2
Enter cost
Input your total cost of goods sold (COGS) or expenses.
3
View margin
See gross profit margin percentage and absolute profit.

๐Ÿ’ก Examples

Retail product
INPUT
Revenue: $50,000 ยท Cost: $35,000
โ†’
OUTPUT
Gross Profit: $15,000 ยท Margin: 30%
SaaS product
INPUT
Revenue: $200 ยท Cost: $80
โ†’
OUTPUT
Profit: $120 ยท Margin: 60%

๐Ÿš€ Pro Tips

โœ“Gross margin = (Revenue - COGS) / Revenue ร— 100. Net margin also subtracts operating costs and taxes.
โœ“SaaS and software companies often have 70โ€“90% gross margins. Retail is typically 25โ€“50%.
โœ“If your margin is below the industry average, look at pricing, supplier costs, or operational efficiency.
โœ“Markup and margin are different: 50% markup โ‰  50% margin. Markup is on cost; margin is on revenue.

โ“ Frequently Asked Questions

What is the difference between margin and markup?+
Margin is profit divided by revenue. Markup is profit divided by cost. A 100% markup equals a 50% margin. Always clarify which metric is being used.
What is a good profit margin?+
Highly variable by industry. E-commerce: 10โ€“30%. SaaS: 60โ€“80%. Grocery: 1โ€“3%. Compare to your industry benchmark, not a universal number.

More Calculators Tools

Age CalculatorBMI CalculatorPercentage CalculatorLoan / EMI CalculatorTip CalculatorDate Difference CalculatorPassword GeneratorDiscount Calculator