Profit Margin Calculator
$
$
A margin calculator determines gross profit margin, net profit margin, and markup for a product or business. Margin is the percentage of revenue retained as profit; markup is the percentage added to cost to reach the selling price.
💡
Tip: Target margin, not target markup. If you want a 40% margin, the markup is 66.7%, not 40%. Always work from the selling price down: Margin = 1 − (Cost/Price).
- 1Gross margin = (Revenue − COGS) / Revenue × 100%
- 2Markup = (Revenue − Cost) / Cost × 100%
- 3Net margin = Net profit / Revenue × 100%
- 4Margin and markup are NOT the same: 50% markup = 33% margin
Cost $40, Price $60=33.3% margin, 50% markupCommon confusion — they are different!
Revenue $500k, COGS $300k, expenses $100k=40% gross margin, 20% net margin
| Industry | Gross Margin | Net Margin |
|---|---|---|
| Software/SaaS | 70–85% | 10–25% |
| Retail (general) | 25–35% | 2–5% |
| Grocery | 25–30% | 1–3% |
| Restaurants | 60–70% | 3–9% |
| Manufacturing | 30–50% | 5–15% |
| Healthcare | 40–60% | 5–15% |
⭐
Fun Fact
Software companies have some of the highest gross margins in business (70–90%) because the marginal cost of delivering an extra copy of software is nearly zero. This is why software valuations are often 10–20× revenue.
References
🔒
୧୦୦% ମାଗଣା
ପଞ୍ଜୀକରଣ ଆବଶ୍ୟକ ନାହିଁ
✓
ସଠିକ
ଯାଞ୍ଚ ହୋଇଥିବା ସୂତ୍ର
⚡
ତତ୍କ୍ଷଣ
ତତ୍କ୍ଷଣ ଫଳ
📱
ମୋବାଇଲ୍ ଅନୁକୂଳ
ସମସ୍ତ ଡିଭାଇସ୍