Profit Margin Calculator

Calculate gross, net, and operating margins instantly. See visual breakdowns, convert between margin and markup, and compare to industry benchmarks.

Understanding your profit margins is essential for pricing decisions, investor conversations, and measuring business health. This calculator breaks down gross, net, and operating margins with clear visual comparisons, so you can see exactly where your money goes and how much you actually keep.

📥 Enter Your Numbers

Revenue / Selling Price

Cost of Goods / Cost Price

📤 Your Margins

Gross Profit Margin

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💵 Gross Profit —

📦 Cost —

🏷️ Markup —

Cost: — Profit: —

💡 Quick Pricing Guide

If your cost is $0, here's what to charge for common margins:

30% Margin

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30% gross margin

50% Margin

—

50% gross margin

70% Margin

—

70% gross margin

📊 Industry Benchmarks Typical Gross Margins

Industry	Gross Margin

🔄 Margin ↔ Markup Converter

Margin and markup are not the same thing. A 50% markup is only a 33.3% margin. Enter either one and we'll convert instantly.

Margin %

⟷

Markup %

📋 Quick Reference

Margin	Markup	Multiplier
20%	25%	1.25×
25%	33.3%	1.33×
30%	42.9%	1.43×
33.3%	50%	1.50×
40%	66.7%	1.67×
50%	100%	2.00×
60%	150%	2.50×
75%	300%	4.00×

📚 How to Calculate Profit Margin

Gross Profit Margin measures what percentage of revenue remains after subtracting the direct cost of goods sold. The formula is: (Revenue - COGS) / Revenue × 100

Net Profit Margin accounts for all expenses including operating costs, taxes, and interest. It shows the true bottom-line profitability of your business.

Markup vs Margin: These are often confused. Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. A 100% markup equals a 50% margin — use the converter above to switch between them.