Profit Margin Calculator
Calculate profit margin, markup percentage, and gross profit for any product or service.
Profit Margin
40.0%
Markup
66.7%
Revenue$100.00
Cost-$60.00
Gross Profit$40.00
Margin vs Markup
Margin = Profit / Revenue. Markup= Profit / Cost. A 50% margin means you keep half of the selling price. A 100% markup means you sell at double the cost — which is the same as a 50% margin.
| Margin | = Markup | Multiplier |
|---|---|---|
| 20% | 25% | 1.25x |
| 25% | 33.3% | 1.33x |
| 30% | 42.9% | 1.43x |
| 40% | 66.7% | 1.67x |
| 50% | 100% | 2x |
FAQ
What is a good profit margin?
It varies by industry. Retail typically sees 2-5%, software/SaaS 60-80%, and consulting/freelancing 30-50%. The key is understanding your specific market.
Does this include payment processing fees?
No, this calculator shows gross margin. For net margin including payment fees, use our fee calculators to find the actual amount you receive, then use that as your revenue.
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Margin40.0%
Profit $40.00