Profit Margin Calculator
Calculate gross, operating, and net profit margins from your revenue and costs.
Updated March 2026 — Current tax rates & formulas
$
$
Disclaimer: This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for advice specific to your situation.
Related Calculators
How to Calculate Profit Margin
Profit margin measures what percentage of revenue you keep as profit. Gross profit margin = (Revenue - Cost of Goods Sold) / Revenue × 100. A 40% margin means you keep $0.40 of every dollar after direct costs.
Profit Margin vs Markup
These are different metrics. A 50% markup results in only a 33.3% margin. Markup is based on cost; margin is based on selling price. Most businesses target 20-50% gross margins depending on industry.
Frequently Asked Questions
What is a good profit margin?
This varies by industry. Retail averages 20-25%, software/SaaS 70-80%, restaurants 3-9%, and manufacturing 20-35%. A healthy net profit margin across all industries is typically 10-20%.