Calculate gross profit margin, markup percentage and revenue instantly. Perfect for business owners & freelancers.
💼 Business Tool⚡ Instant📊 3 Modes💚 Free
Revenue
–
selling price
Gross Profit
–
revenue − cost
Profit Margin
–
% of revenue
Markup
–
% of cost
📊 Profit Margin Meter
0% (Loss)10% (Low)25% (Good)50%+ (Great)
⚙️ Calculate Profit
Cost Price
$
Selling Price (Revenue)
$
Cost Price
$
Markup Percentage
%
Cost Price
$
Target Margin %
%
📋 Full Breakdown
Cost Price–
Selling Price–
Gross Profit–
Profit Margin–
Markup %–
For Every $1 of Revenue–
🏭 Industry Profit Margin Benchmarks
💻 Software / SaaS60–80%
🛍️ Retail2–10%
🍔 Restaurants3–9%
🏗️ Construction2–6%
💊 Pharmaceuticals15–25%
📱 Consumer Electronics5–15%
🎨 Freelancing30–60%
🏦 Banking / Finance20–30%
How to Calculate Profit Margin
Our profit margin calculator uses the formula: Profit Margin = (Revenue − Cost) ÷ Revenue × 100. For example, if you sell a product for $100 and it costs $60, your profit margin is 40%.
Profit Margin vs Markup — What's the Difference?
Profit margin is profit as a percentage of revenue. Markup is profit as a percentage of cost. A 50% markup on a $100 cost gives you a 33.3% profit margin — they are NOT the same!
What is a Good Profit Margin?
Under 5% — Low, typical for retail and restaurants
5–20% — Average, most industries
20–40% — Good, healthy business
40%+ — Excellent, software/SaaS typical
Frequently Asked Questions
How do I calculate profit margin? +
Profit Margin = (Revenue - Cost) / Revenue x 100. For example, if revenue is $100 and cost is $60, profit margin = 40%.
What is the difference between markup and profit margin? +
Markup is profit as a percentage of cost. Margin is profit as a percentage of revenue. A 50% markup equals a 33.3% profit margin.
What is a good profit margin? +
Generally: under 5% is low (retail), 5-20% is average, 20-40% is good, and 40%+ is excellent (SaaS/software).