Calculator
Profit Margin Calculator
Calculate gross profit margin, net profit margin, and markup. Find your target price or cost with reverse calculation.
📊Gross Profit Margin
Gross Profit
$40,000.00
Gross Margin
40.00%
Markup %
66.67%
🏆Industry Benchmarks
How does your margin compare to typical industry standards?
🛍️ RetailGross 25%
+15.0% above benchmark
💻 SaaSGross 75%
-35.0% below benchmark
🍽️ RestaurantGross 65%
-25.0% below benchmark
💼 ConsultingGross 70%
-30.0% below benchmark
🏭 ManufacturingGross 35%
+5.0% above benchmark
🏥 HealthcareGross 40%
+0.0% above benchmark
💡 Margin vs Markup: A 50% markup on a $10 cost = $15 price = 33.3% margin. They are not the same!
📚Formulas & Definitions
Gross Profit Margin
(Revenue − COGS) ÷ Revenue × 100Measures how efficiently you produce and sell products. Excludes operating costs.
Net Profit Margin
(Revenue − All Expenses) ÷ Revenue × 100The bottom line: what percent of revenue becomes actual profit after all costs.
Markup Percentage
(Price − Cost) ÷ Cost × 100How much above cost you are pricing. Different from margin — always higher than margin %.