Profit Margin Calculator
Calculate profit margin, gross profit, markup percentage, and revenue from cost and selling price.
About the Profit Margin Calculator
Profit margin shows how much of each sale you keep as profit. Gross margin is (revenue minus cost of goods) divided by revenue. Net margin also subtracts overheads, tax and interest. A product that sells for 50 and costs 30 to make has a gross margin of 40 percent.
Margin and markup are often confused. Markup is profit as a percentage of cost, while margin is profit as a percentage of revenue. The same 50 item with a 30 cost has a markup of 66.7 percent but a margin of 40 percent. Mixing the two up leads to underpricing.
To reach a target margin, divide your cost by one minus the margin. For a 40 percent margin on a cost of 30, the price is 30 divided by 0.6, which is 50.
Revenue of 10,000 with total costs of 7,500 leaves a profit of 2,500, a margin of 25 percent.
Tips for best results
- Review margins regularly, since supplier prices and fees change.
- Do not forget payment fees, shipping and returns when working out cost.
How to use the Profit Margin Calculator
Why use Toolseza for Profit Margin Calculator?
Use this tool as often as you need with no paywalls, premium tiers, or hidden daily calculation quotas.
All calculations and file manipulations run inside your web browser. Your inputs are never sent to a cloud server.
Results update in real-time as you type or adjust settings, with instant one-click copy and export capabilities.
Works natively on smartphones, tablets, laptops, and desktop computers with zero installation or account creation.
Editorial Standards & Verification: All formulas, algorithms, and conversion factors implemented on Toolseza adhere to openly documented international standards (ISO, NIST, BIPM, W3C). Results are verified against benchmark reference datasets before publication.
Frequently Asked Questions
Is Profit Margin Calculator free to use?
Yes — Profit Margin Calculator is completely free, unlimited, and requires no sign-up.
What is a good profit margin?
It varies by industry. Retail often runs 2–10%, software companies 20–40%, and service businesses 10–30%. Compare your margin to industry benchmarks to judge performance.
Are the calculations accurate?
Yes — it uses the standard, widely accepted formula, so results are accurate and reliable.
Does it work on mobile and tablet?
Yes — Profit Margin Calculator works on any modern browser, including mobile and tablet, no app required.