Profit Margin Calculator
Calculate gross profit margin, markup, and selling price from your cost and revenue. Useful for pricing decisions and profitability analysis.
Worked example
Cost 50, sell 80: ((80 − 50) ÷ 80) × 100 = 37.5%
How to calculate
- Enter the cost.
- Enter the selling price.
- Read the margin percentage and the markup.
Formula
Margin = ((Revenue − Cost) ÷ Revenue) × 100
Explanation
- Product pricing and profitability checks.
- Comparing margins across product lines.
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Use CalculatorFrequently Asked Questions
What is a good profit margin?
It varies widely by industry. Software and SaaS can run 70–90% margins; grocery retail often runs 1–3%. Always benchmark against your sector.
How do I set a price for a 40% margin?
Divide your cost by 0.6. For a 40-dollar cost, the minimum price for 40% margin is 40 ÷ 0.6 ≈ 66.67.