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Free Profit Margin Calculator

Enter your revenue and cost to see gross profit, profit margin, and markup in seconds. Know whether your pricing actually leaves you a healthy margin.

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Revenue / selling price ($) Cost (COGS) ($)

Cost means the direct cost of delivering the product or service (cost of goods sold), not all your overhead.

Profit margin

40.0%

Gross profit$400.00

Markup66.7%

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FAQ

Questions

What is the difference between margin and markup?+

Margin is profit as a percent of the selling price; markup is profit as a percent of the cost. A 40% margin on a $1,000 sale is a 66.7% markup on the $600 cost.

What is a good profit margin?+

It varies by industry, but under 20% gross margin is usually thin for a small business. The right target depends on your overhead and model.

Is this gross or net margin?+

This is gross margin (revenue minus direct cost). Net margin also subtracts overhead, taxes and other expenses, which clean books track for you.

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Book a free consultation and we will set up books that show your true profit on every product and service.

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