Enter your cost and revenue (or desired profit margin %) into the Profit Margin Calculator and get back your net profit, gross margin %, and markup % in seconds. You can also work backwards — enter cost and margin to find the right selling price. Perfect for pricing products, evaluating deals, or checking business health at a glance.
Profit Margin
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Net Profit
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Selling Price
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Markup %
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Profit Margin = (Revenue − Cost) / Revenue × 100. For example, if you sell an item for $160 and it cost $120 to make, your profit is $40 and your margin is 25%. It expresses profit as a percentage of revenue, not cost.
Margin is profit as a percentage of the selling price (revenue), while markup is profit as a percentage of the cost. A 25% margin does NOT equal a 25% markup — they use different bases. Markup = (Profit / Cost) × 100, while Margin = (Profit / Revenue) × 100.
Gross profit margin only accounts for the direct cost of goods sold (COGS). Net profit margin deducts all expenses — operating costs, taxes, interest, etc. — from revenue. This calculator computes gross profit margin using cost and revenue as inputs.
If you want a 20% margin on a product that costs $100, use the formula: Selling Price = Cost / (1 − Margin). So: $100 / (1 − 0.20) = $125. Enter your cost and set the target margin to 20% in this calculator and it will find the selling price automatically.
It varies heavily by industry. Retail typically sees margins of 5–20%, software and SaaS can exceed 70%, and restaurants often operate at 3–9%. As a general rule, a net profit margin above 10% is considered healthy for most businesses, but always benchmark against your specific industry.
In theory, yes. Very high margins can attract competition or signal that you're underinvesting in growth, quality, or customer service. However, for most small businesses, a higher margin simply means more financial resilience and room to absorb unexpected costs.
No. Profit is an absolute dollar amount — how much money you made after costs. Margin is a ratio — it expresses that profit as a percentage of revenue. Two businesses can have the same profit in dollars but very different margins if their revenues differ.
Enter your cost and your desired target margin percentage, and leave the revenue field blank. The calculator will work backwards to show you the exact selling price you need to hit that margin, along with the resulting profit and markup.