Profit Calculator

Net profit margin is the percentage of revenue that remains as profit after all costs are subtracted. It is calculated by dividing net profit by revenue and multiplying by 100. A higher net profit margin indicates a more profitable business.

Profit margin is calculated as net profit divided by revenue, expressing profit as a share of what you earned. Profit percentage is calculated as net profit divided by cost, expressing profit as a share of what you spent. Both are useful but measure profitability from different angles.

Net Profit = Revenue − Cost. It represents the actual dollar amount you earn above your total costs. For example, if your revenue is $750 and your cost is $500, your net profit is $250.

A good profit margin varies significantly by industry. Retail businesses often operate on margins of 2–10%, while software companies may see margins above 20%. Generally, any positive margin means you are profitable, but higher margins indicate stronger financial health.

Profit percentage (also called markup percentage) is calculated as net profit divided by cost. It tells you how much profit you make on top of what something costs you. For instance, a $200 profit on a $500 cost gives a 40% profit percentage.

If cost exceeds revenue, your net profit will be negative, meaning you are operating at a loss. The profit margin and profit percentage will also be negative, signaling that your pricing or cost structure needs adjustment.

Yes. This profit calculator works for any scenario where you know your total cost and total revenue — whether you run a retail store, a service business, an online shop, or are evaluating a single product or project.

This calculator computes net profit margin based on the costs you enter against total revenue. A gross margin calculator typically focuses specifically on cost of goods sold (COGS) versus revenue, excluding operating expenses. The formulas are closely related but the inputs may differ depending on what costs you include.