Profit Margin Calculator
Calculate gross profit, profit margin percentage, and markup percentage from your revenue and costs.
Profit Analysis
Gross Profit is the difference between revenue and costs:
Gross Profit = Revenue - Costs
Profit Margin % tells you what percentage of revenue is profit:
Profit Margin % = (Gross Profit / Revenue) × 100
Markup % tells you how much you added on top of costs:
Markup % = (Gross Profit / Costs) × 100
Example: If you sell a product for $100 and it costs $60:
- Gross Profit = $40
- Profit Margin = 40%
- Markup = 66.7%
Healthy profit margins by industry:
- Retail: 2–5%
- Manufacturing: 5–10%
- Software/SaaS: 70–90%
- Consulting: 15–25%