Free · Margin & markup

Profit Margin
Calculator

Know your profit, margin and markup in seconds from revenue and cost.

Your numbers

Revenue ($)

Cost ($)

Margin = profit ÷ price. Markup = profit ÷ cost. Know which you are quoting.

Profit

$8,000

Margin

40%

Markup

66.7%

Tip: even a 1% margin gain is significant at volume — review pricing regularly.

FAQ

What is profit margin?

Profit margin is profit as a percentage of revenue: (revenue − cost) ÷ revenue × 100. A 40% margin means you keep $0.40 of every $1 sold.

What is the difference between margin and markup?

Margin is profit ÷ selling price; markup is profit ÷ cost. A 50% markup equals a 33% margin. They are often confused.

What is a good profit margin?

It varies by industry: retail 5–20%, services 15–30%, software 70–90%. Compare against your sector.

How do I increase margin?

Raise prices, cut costs, or shift to higher-margin products. Even a 1% margin gain can be huge at scale.

Units to profit.

Payments & total cost.

What to charge clients.